Greig made this suggestion while delivering the annual MCC Spirit of Cricket Cowdrey Lecture at Lord's on Tuesday.
"India should agree to expand the IPL to say an Asian League and include extra teams from Sri Lanka, Bangladesh and Pakistan, Greig said.
Greig, who is know a Television commentator, wanted the cricket boards of Sri Lanka, Bangladesh and Pakistan to be "given financial interest" in the Asian League. By do this, Greig felt their players would be able to "earn good money."
"The cricket boards of these countries should be given a financial interest in the competition, which would enable them to under-write most of their cricket. Those funds would compensate the boards for not running domestic Twenty/20 competitions of their own as they are planning to do now. This expanded league would enable players from the have-not countries to earn good money and still be available for Internationals," Greig, who was born in South Africa, said.
The 65-year-old, who played 58 Tests and 22 One Day Internationals, also wanted India to reduce the length of IPL.
"India should agree to reduce the length of the IPL in its current form as a trade-off for the other countries not scheduling Internationals in opposition to it. That is, unless it adopts my Asian League proposal which I shall discuss in a minute."
"Sri Lanka, Bangladesh, New Zealand and the West Indies agree not to schedule any Internationals in opposition to the IPL. These countries will never be able to generate enough income to make Internationals in the long term more attractive to their players than the IPL money."
Greig called for England to set up an equivalent of IPL and include teams from West Indies and Ireland.
"England should set up its equivalent of the IPL and include teams from the West Indies and one team from Ireland, which would have a financial interest in the competition. Similar arrangements should be made by South Africa for Zimbabwe and Kenya. And Australia's Big Bash should include New Zealand teams," Greig suggested.