The Sunday Times reported that the game"s elder statesmen were “worried that ungentlemanly conduct during international matches" was being imitated on school pitches and local grounds.
Players caught sledging or refusing to leave the pitch when given out could receive a yellow card in the future, the newspaper said.
One yellow card would serve as a warning, with a second leading to a one-match suspension.
The ECB will discuss the proposals next month following a trial of the system in public schools. The new penalties could be introduced in time for next season.
The debate over cricketers" behaviour was intensified when England one-day captain Paul Collingwood insisted on a run-out against a New Zealand batsman in a game last week, even though the batsman had been accidentally knocked over.
Collingwood later apologised for his actions, which were viewed as deeply unsporting by many, saying it was a “split-second decision at the time and maybe it was not the correct one."
The MCC, the guardian of the games laws, has warned that Test and international cricketers must set a better example.