The Welsh Rugby Union and the nation's four professional sides have signed a six-year deal on a new financial package.
The Professional Rugby Board (PRB) announced on Friday evening that it has signed a long-form Professional Rugby Agreement (PRA) with the WRU, Cardiff, Dragons, Ospreys and Scarlets which runs until 2029.
Under the agreement, salary caps will be introduced for the 2023/24 season, with "fixed" and "fixed and variable" deals available to players.
Contracts for players of "national interest" will be agreed by the club and the WRU performance director.
Uncertainty over the deal had led to the threat of Wales players refusing to play against England in this season's Guinness Six Nations.
PRB chair Malcolm Wall said: "It is no exaggeration to say a great deal of work, time and effort has gone into establishing an agreement all parties can be happy with and which is designed to achieve the very best results for Welsh professional rugby from the resources available to us."
WRU CEO Nigel Walker added: "Our objective has been to achieve a sustainable future for our four professional sides and for Wales and credit must go to all involved now this has been achieved.
"The cooperation between the WRU, our professional clubs and the WRPA has been a vitally important part of this process and we will continue to work together for the future benefit of Welsh rugby.
"We now have a structure which will provide a backdrop of stability from which we can build."