The controversial rule came under the spotlight recently after Spanish club Recreativo Huelva signed Argentinian midfielder Sebastian Nayar on a free transfer after his contract with Boca Juniors came to an end.

However, the Argentinian club claimed the player was still under contract due to an Argentinian Football Association (AFA) regulation which allows clubs to increase a player's contract for an extra two years without the player's consent.

As the rule does not appear in FIFA regulations the players are considered free agents by clubs in Europe.

On Wednesday night, AFA president Julio Grondona announced that agents "should be expelled from Argentinian football" as he revealed that a meeting between the AFA Executive Committee and the Union of Players decided that the contract rule would be scrapped for all player over the age of 23.

"Argentinian clubs deserve to defend the formation of footballers, beyond the ones who advise players thinking about their own profit," he said.

"We only have to take this to FIFA and I hope they can understand all the countries are not the same, all the continents are not the same."

Under the new rules players over 23 would have release clauses stipulated in their contracts, as happens in Europe.

However, those under 23 would still be granted an automatic two-year extension and a 20% pay rise, with those players not offered a new deal receiving compensation.

The secretary general of the Union of Players, Sergio Marchi, explained: "We have not decided the amount of this compensation yet. Another very important thing is that the signature of all the agents involved in each transfer must appear in the contract."

Lanus president and the AFA legal secretary, Alejandro Maron, added: "We still need the approval of the Ministry of Labour and then to inform FIFA of these measures, but we've made very important steps to solve this problem."

Any change in the rules should not affect the Nayar case, as it would not be retrospective.

Recreativo directors have remained firm in their stance that the AFA rule is illegal and are refusing to pay a transfer fee for the player.