It comes amid White House concerns that "deep state" enemies inside the intelligence community are working to undermine the president.
The goal of the global spy network would be to circumvent the "Deep State", a term widely used to describe long-time officials within the government who seemingly possess a political agenda meant to undermine an administration.
The three envisioned an intelligence apparatus created to reinforce the Trump administration's political agenda, which would be free to circumvent the existing U.S. intelligence bureaucracy.
The proposal's authors - former Blackwater founder Erik Prince, Iran-Contra provocateur Oliver North, and former Central Intelligence Agency operative John Maguire, who also served on Trump's transition team, The Intercept reports.
"Pompeo can't trust the CIA bureaucracy, so we need to create this thing that reports just directly to him", a former senior intelligence official told The Intercept.
"It is a direct-action arm, totally off the books", the official also said.
Maguire, a former CIA case officer and intelligence contractor for the Amyntor Group, reportedly led a US effort to provoke Saddam Hussein into war before the 2003 invasion of Iraq, and he worked alongside the late Iran-Contra figure Duane "Dewey" Clarridge.
News website The Intercept was first to report the proposal. CNN has previously reported that Prince met with members of Trump's incoming national security team during the presidential transition, and that he boasted about his influence in the Trump orbit around that same time.
A spokesperson for Prince denied the claims in a statement to CNN's Erin Burnett. The fact that his sister is Betsy DeVos, Trump's Secretary of Education, gives him access to Trump to pitch this idea. He was the "ideological leader" brought in to lend credibility, said the former senior intelligence official.
"I can find no evidence that this ever came to the attention of anyone at the NSC or [White House] at all", wrote Michael N. Anton, a spokesperson for the National Security Council, in an email.
The alleged proposal would create a spy network in countries deemed "denied areas" for current American intelligence personnel, including North Korea and Iran. It also includes the creation of a rendition unit tasked with capture terror suspects worldwide. "These guys said they were protecting the president".
Pompeo, who was recently labeled a possible successor to current Secretary of State Rex Tillerson, has reportedly urged the White House to go ahead with the private contract.
But a Central Intelligence Agency spokesperson said The Intercept had been "provided wildly inaccurate information by people peddling an agenda".