Skipper Sourav Ganguly will be one of the highest paid players

It will see players taking part in Tests and one-day internationals paid according to seniority.

"The cricket board and the players have agreed on a gradation formula," said Jagmohan Dalmiya, president of the Board of Control for Cricket in India.

"We've reached a final understanding. What remains is to draft a contract incorporating all the details."

Captain Sourav Ganguly, star batsmen Sachin Tendulkar and Rahul Dravid and leg-spinner Anil Kumble represented the players during the discussions.

We have agreed on all points and nothing more is left to discuss Jagmohan Dalmiya

They are currently paid on a match by match basis with fees taken from money paid by team and match sponsors.

But the new agreement will also see the introduction of annual contracts, similar to those in place in Australia and South Africa.

There is, however, no specified time for the new agreement to come into force.

"Neither we nor the players are in a hurry to sign the contract," added Dalmiya.