Three over-age players per team will be allowed in the tournament which will see some of its qualifying matches played at the home of Coventry City FC.
There had been calls to make an U21's tournament but the International Olympic Committee had offered concerns that this may affect the number of countries which were able to field teams in the 2012 games which take place from 27 July to 12 August 2012.
However, clubs will not have to release players for the competition which is not part of FIFA's calendar.