The FA Board has today approved a new Prize Fund for next season's FA Cup sponsored by E.ON, with a 69% increase from last season.

The total Prize Fund will increase from £9.7m to £16.4m, with raised payments in every round.

The winners will receive a total of £3.8m, an increase of 58% from last season's £2.4m. This includes £2m for winning The Final alone, up from £1m.

The runners-up will receive £1m from The Final, and £2.8m overall. The losing Semi-Finalists will receive £500,000, £1.3m overall.

The 2008-09 season is the first under the new TV deal with ITV and Setanta, worth £425m over the next four years.

Chief Executive Brian Barwick said: "I am delighted that the clubs playing in The FA Cup will benefit from this extra financial boost, which reflects the huge importance The FA places on our flagship competition.

Portsmouth are the current holders of The FA Cup."Last season was a vintage year for The Cup, full of upsets and surprises. In particular, several smaller teams enjoyed sensational results which not only create a real buzz within the clubs but also provide real financial security."

Manchester United Chief Executive and FA Board member David Gill added: "This represents a significant windfall for clubs and a terrific boost for the competition. Next season there will be an even greater incentive for clubs to do well in The FA Cup."

In addition, The FA will continue to distribute to clubs through The FA Cup broadcast payment system.

With a record 762 teams entering next season, more clubs than ever will be able to reap the rewards of a successful Cup run.