The politician in charge of the countryside, Alun Michael, told MPs about the plans.
They'll vote on whether to make them law next year.
But anti-hunting campaigners have already promised to try to wreck the proposals - and get hunting banned completely.
This is what is in the plans:
'Licensing' means that organisations that want to hold a hunt will have to register to do so - and they'll have to show there isn't another, less cruel, way of killing the foxes in their area.
- Hare coursing will be banned
- Stag hunting will be banned
- Fox hunting will be 'licensed' with tight controls
- Hunts will be allowed if they can prove they are not causing unnecessary suffering.
Years of argument
It's taken five years of arguing to come to a decision about the future of hunting.
Countryside campaigners say it's important to protect hunting as it provides jobs and is the kindest way to stop the spread of foxes.
But some Labour MPs are already saying they will vote against the plans because they want it banned completely.
Fox hunting was banned in Scotland earlier in 2001.