Tighter auditing and inspection of MPs' expenses are expected to be recommended in a report by a Commons committee.
MPs are to be banned from using taxpayers money to buy new kitchens, televisions and other household goods for their second homes in London.
Six MPs have considered options such as a "top-up" payment of more than £20,000 to replace the second homes allowance. MPs will vote on options next week.
There will also be tighter checks on how they spend their expenses, the Members Estimate Committee has said.
A "root and branch" review was launched after a row over Tory MP Derek Conway, who paid his son from the public purse for reportedly little work.
They will still get £24,000 a year tax free for living away from home but are banned from spending it on furniture and home improvements.
But critics say MPs should have let an independent body review the system.
MPs are due to debate and vote on the proposals next week.
Sources have told the BBC the report will recommend a more robust system of auditing and inspection of MPs' claims - until recently MPs could claim up to £250 a month without needing to provide a receipt.
The proposals would spell the end of the so-called "John Lewis" list - used by Commons officials to determine whether an expenditure claim submitted by an MP is reasonable.
Greater transparency
The Additional Cost Allowance would be replaced by an overnight expenses allowance of £19,600 a year for accommodation.
The BBC understands the review will reject the options of a fixed daily allowance or of a lump-sum payment of up to £20,000 to replace the second-home allowance. Conservative leader David Cameron has already dismissed such notions as a bad idea.
External audit
Prime Minister Gordon Brown has said greater transparency is required and Downing Street sources say he will back any proposals providing it.
They would also be given £30 a day subsistence allowance without receipts, up to a maximum of £4,600 every year.
A series of recommendations will be published at 1000 BST by the Commons Members Estimate Committee, headed up by Speaker Michael Martin. They will then debated and voted on in the House of Commons on 3 July.
But they would have to provide receipts for all other expenses from 1 April next year. At the moment they can claim for items up to £25 without receipts.
However well the Members Estimates Committee do their work ... the rest of us are bound to doubt the outcome Sir Christopher KellyCommittee for Standards in Public life
The conclusions came in a long-awaited report from the Members Estimates Committee, which has been considering how to restore public trust in MPs' expenses after a string of scandals.
One option is likely to be a top-up payment, thought to worth up to £24,000 a year, to replace their second homes allowance.
At least one in five MPs would face "spot checks" on their expenses claims to be carried out by the National Audit Office.
Currently MPs can claim about £23,000 a year to run a second residence - the average claim is £19,500.
And there would be full external audit of all MPs' expenses once a Parliament.
A flat grant would mean MPs avoid the scrutiny of submitting receipts - as demanded by a recent Freedom of Information battle.
The committee said: "Our overriding conclusion is that we must introduce a robust system of scrutiny for parliamentary allowances as a matter of urgency in order to build public confidence.
'John Lewis list'
"We recommend that, with immediate effect, Members should no longer be able to claim reimbursement for furniture and household goods or for capital improvements."
Commons authorities lost the High Court battle to keep secret details of how much and what MPs had claimed money for under that allowance.
There has been some criticism that a review of MPs' expenses has been carried out by MPs themselves.
Parliamentary standards watchdog Sir Christopher Kelly said this month he was "baffled" as to why it had been thought appropriate, as it would not command as much public confidence as it would if there had been outside involvement.
"The difficulty is that however well the Members Estimates Committee do their work - and I have no doubt they will do so with great integrity and objectivity - the rest of us are bound to doubt the outcome," he said.
MPs' expenses were criticised earlier this year when the so-called "John Lewis list" of household items that MPs can purchase was published.
Under the ACA system, not only can MPs use the £23,000 limit to claim expenses towards paying the mortgage or rent on second flats or houses, but they can also use it to claim towards the costs of upkeep and refurbishment and for food.
When the Commons was forced to disclose the cash limits for these other expenses, the list was found to include allowances for items such as £10,000 towards a kitchens and £6,000 towards a bathroom.
