The Designated Player Rule was a mechanism introduced in 2007 to allow an individual club to pay one player any salary above the mandated fixed salary cap.

England star David Beckham became the first Designated Player when he signed for the Los Angeles Galaxy from Real Madrid and others, including Mexico'sCuauhtemoc Blanco, Sweden'sFreddie Ljungberg and Juan Pablo Angel of Colomia have since followed suit.

MLS clubs were able to trade with other clubs for a second Designated Player but the latest decision allows them to sign at least two Designated Players with the option of "purchasing" a third Designated Player slot for $250,000.

"Expanding the Designated Player Rule is another example of MLS's commitment to providing top-level soccer for our fans," MLS executive vice president of player relations and competition Todd Durbin said.

"After three seasons, we have seen that the Designated Player Rule improves the quality of play, creates intrigue and discussion, and enhances our clubs' distinct on-field identities.

"We will continue to see varied approaches from our clubs in assembling their rosters, and these changes will give them increased flexibility."

Under the rules, $335,000 of the each Designated Player's salary counts towards a club's salary cap, down from $415,000 under the old agreement, a figure that accounted for approximately 18% of that budget. The new rules reduce that budget charge to approximately 13%.