Vaughan's England team were praised by Sport England.

The England and Wales Cricket Board came under fire following Thursday's publication of The Sports Nexus Report on English Cricket on Thursday.

Sport England chief Roger Draper issued the ECB with a two-month deadline.

"We may have to consider future funding if significant changes are not made before cricket's four-year business plan is submitted in November."

In the meantime, Sport England will continue to fund Team England and the National Cricket Academy.

They were also keen to praise the rise of Michael Vaughan's team to number two in the world rankings.

But a statement from the organisation said: "Sport England have become increasingly concerned by the governance of English Cricket and have endeavoured to work with all parties to modernise this sport.

"The approach to the ECB has been inclusive, charting a course of reform from within.

"Sport England has worked with all key partners including the ECB, the MCC, cricket sponsors and broadcast partners."

Sport England also warned it is 'undertaking reform' with regards to a number of other sports including golf, boxing, bowls, karate, hockey and athletics.

Addressing Sport England's concerns will be a high priority fo Hugh Morris, who takes over as acting chief executive of the ECB next month.

He will fill the role until a permanent replacement for Tim Lamb is appointed.