A public consultation into the issue has been launched by Defra.
Some registrations had been used to hinder legitimate development of schools, health centres and other much needed services – even on brownfield land, it said.
There was also evidence that a significant number of applications were associated with development proposals, said the government.
The consultation asks whether a better balance could be struck between protecting village greens valued by local people and securing the new homes, jobs and essential infrastructure the country needs.
Applications were free to make but are often costly and time consuming for the local authority, the landowner and others, said Defra.
The law relating to greens is notoriously complex.
The government insists its proposals won't prevent the protection of already registered village greens. Neither would any changes end the designation of new greens.
Instead, the proposals set out seek to improve the operation of the current registration system, reducing the burden on local authorities and landowners.
"We expect that the reforms will reduce the workload local authorities to deal more speedily with applications for sites which remain eligible," said Defra.
"Changes to the existing registration system may also encourage landowners to provide new sites for access."
Conservation groups are likely to have misgivings about the proposed changes. But rural business leaders welcomed the consultation.
The Country Land and Business Association said it was "pleased" the government had launched a public consultation on the issue.
The association has lobbied for reform of the registration of new village greens since 2006 and asked for a consultation to be brought forward through the Localism Bill.
It argues that the criteria for registering village greens is sometimes used to try to stop much-needed rural housing even after planning permission has been granted.
CLA President William Worsley said: "If an area of land is designated as a town or village green, any development on it is prohibited, despite any grant of planning permission.
"It is important that genuine applications for village green registrations succeed, but too often spurious applications are made."
Although too late to achieve substantive reform in the Localism Bill, Mr Worsley said a public consultation was right and proper before any proposed legislative changes.
"We believe the Government appreciates the problem and are pleased Defra has decided to consult," he said.
"However, the road to reform would be eased and speeded up if the necessary changes, once decided upon, could be enacted by regulation rather than primary legislation."
Copies of the consultation document can be viewed here.
The consultation invites interested parties to submit their views on the proposals by 17 October 2011.
