The AFL is set to introduce a form of free agency from 2012 with AFLPA CEO Matt Finnis denying the move will see a flood of players changing teams.
In a complicated outcome from a two-year negotiation process between the AFL, clubs and the AFL Players Association, there will be various categories of free agency offered to players, based around an eight-year period of service to a club.
Players who are classified in the top 25 percent of salaries at their club will now be eligible for restricted free agency after their first contract expires following the eight-year deadline, while those classified in the bottom 75 per cent are available on unrestricted free agency.
The difference between unrestricted and restricted free agency is that with a restricted free agency a player has the right to move to a club of their choice subject to the current club's right of first refusal over their services. If the current club can match the offer from a rival club, the player must stay or enter the draft.
Additionally all de-listed players will be classified as free agents and can negotiate directly with the clubs rather than go through the draft system.
The AFL will determine a formula for compensating clubs who lose players through free agency, but that has yet to be calculated.
AFL CEO Andrew Demetriou said it was a landmark day for the relationship between the AFL, the club and the players.
"Today's an historic day in the evolution of the AFL competition," he said. "The agreement that the AFL commission approved yesterday balances the needs of the players, the clubs, the supporters and the competition."
"Importantly, the agreement protects the integrity of the salary cap and draft - key pillars in the ongoing success of the competition,” he said.
Finnis said that he believed that conditional free agency won't lead to a flurry of team changes from players, but would instead give all players a better base to negotiate their futures.
"I don't necessarily think that we'll see more movement of players between clubs, but I think that we will certainly see is better contractual security for players as a result of the increased position they have when they come to negotiate their contracts," he said.
Demetriou said player movement had been part of the competition for many years and he didn't think that would alter dramatically with this change.
"There's been player movements between clubs. Barry Hall went from St Kilda to Sydney to the Western Bulldogs, Chris Judd went from West Coast Eagles to Carlton, it's been happening. What this does provide is the opportunity for clubs to secure their players if they can, and it gives the opportunity for players to get some more certainty," he said.
"It gives players more flexibility if they are delisted to be able to negotiate with whoever they want instead of going through the draft and take their chances and think they've got the balance right."
Demetriou said that he hoped that the agreement would clear up some of the scepticism and scaremongering about the prospect of free agency.
"I think people in the past have naturally had a bit of scepticism and fear about free agency, but we've been saying consistently for two years that we aren't afraid of free agency, we just wanted to get the model right," he said.
AFL football operations manager Adrian Anderson said it was likely that the introduction of free agency would spell the end of the pre-season draft.