A final decision is due to be made at the meeting of FIFA Congress in Paris in June.
Friday's announcement was made by FIFA President Gianni Infantino despite a letter from Europe's elite clubs telling him they will not take part in the competition.
Earlier, the AIFF had expressed keenness to host the tournament after the success of the FIFA Under-17 World Cup for men in 2017.
The new tournament would be projected to include three teams from Concacaf, although available information does not indicate how teams would qualify.
It will run every four years and take place from June to July in the slot now used for the World Cup warm-up event, the Confederations Cup.
Infantino was more effusive about the revamped Club World Cup, saying that the current seven-team competition that is held every year in December will be replaced by a 24-team event, with a "pilot edition" being held in June of 2021.
The European Club Association (ECA) says any new competitions should be part of an agreed framework for the worldwide match calendar post-2024.
The current Club World Cup has been structured on a similar scale, with club teams representing the regional champions around the world coming together to play in a short tournament.
But he has been forced to drop the Nations League plan before Friday's meeting of the FIFA Council in Miami, after his own task force said there is no space for such a tournament in the global calendar.
"[We are] firmly against any potential approval of a revised CWC - no ECA clubs would take part", it said. "If it doesn't happen, fantastic also", said Infantino. "We'll continue our discussions, but it's our responsibility today to take a decision and we have to deal with organization matters".
According to a Federation Internationale de Football Association document seen by Associated Press, it has been proposed the tournament would run from 17 June to 4 July, with 2022 World Cup qualifiers (31 May to 8 June) preceding it and the African Cup of Nations and Concacaf Gold Cup possibly taking place from 5 July to 31 July.
The women's under-17 World Cup has 16 nations and Das had said that they can host matches at "just four cities".
VAR, which made its debut at the 2018 World Cup in Russian Federation, will now be deployed for the women's tournament which kicks off in June in France.