A dual-track system, including survey-based lending rates along with transaction-linked indices, is likely to replace scandal-hit London interbank lending rate, or Libor, as soon as next year, the Financial Times said on its website on Sunday.

The new system would provide continuity for holders of US$350 trillion in existing contracts that reference Libor while also paving the way for a new standard tied more closely to objective data, Martin Wheatley, chief executive of Britain's Financial Conduct Authority, said.

The proposal may conflict with US regulators, who want a switch from survey-based lending rates to transaction-linked indices to calculate the interest payable on corporate debt.