The proposals suggest Britain will end free movement rules immediately
The British Home Office is being accused of a "mean and cynical" immigration crackdown.
It comes after a leaked Brexit blueprint revealed plans to slam the door on thousands of unskilled EU migrants.
Under detailed proposals drawn up by officials, Britain will end Brussels' free movement of labour rules immediately after Brexit and introduce restrictions to deter all but highly-skilled EU workers.
The 82-page document, marked as extremely sensitive and dated August 2017, amounts to a "British jobs for British workers" strategy and will delight hard-line Brexiteers but anger pro-Remain MPs.
It says: "Put plainly, this means that, to be considered valuable to the country as a whole, immigration should benefit not just the migrants themselves but also make existing residents better off."
The document proposes measures to drive down the number of lower-skilled EU migrants by offering them residency for a maximum of only two years.
Those in "high-skilled occupations" would be granted permits to work three to five years.
The document also describes a phased introduction to a new immigration system: ending the right to settle in Britain for most EU migrants and tough new restrictions on rights to bring in family members - meaning many families could be split up.
Showing a passport would be mandatory for all EU nationals wanting to enter Britain and there would be a system of temporary biometric residence permits for all EU nationals coming into the UK after Brexit for more than a few months.
The paper, entitled "The Border, Immigration and Citizenship System After the UK Leaves the European Union", has already prompted a fierce political row, after being leaked to The Guardian.
A British government spokesperson said : "We do not comment on leaked draft documents.
"We will be setting out our initial proposals for a new immigration system which takes back control of the UK's borders later in the autumn."
Opposition MPs have reacted angrily to the leak, which comes only weeks after rows over UK Home Office letters threatening EU citizens with deportation and discredited statistics on overseas students remaining in the UK.
Other proposals in the Home Office document include: