It will also allow former Wellington Phoenix goalkeeper Alex Paulsen to register and play for newcomers Auckland FC, on loan from sister club AFC Bournemouth, effective immediately.
The Caceres Clause prevents a club that has bought a player from an A-League Men team from loaning them to another club under the same ownership group.
It was introduced following the 2016 transfer of Central Coast's Anthony Caceres, who was bought by Manchester City and immediately loaned to affiliate club Melbourne City, causing uproar.
FA announced on Friday, in conjunction with the Australian Professional Leagues and Professional Footballers Australia, plans to fully phase out the clause ahead of the 2025-26 season.
It will immediately be amended to allow transfers involving clubs with common ownership, while implementing "guardrails" by limiting the number of multi-club transfers/loans to two such players on loan at once.
That allows Paulsen to register his loan with Auckland and play this upcoming season, ahead of the English transfer window shutting Saturday (8am AEST).
Auckland and Bournemouth are both owned by billionaire Bill Foley.
Sydney FC's Anthony Caceres, who's played in the ALM previously for Melbourne City and the Mariners. (Steven Markham/AAP PHOTOS)
Melbourne City (City Football Group) and Perth Glory (Pelligra Group) are also part of multi-club ownership groups.
In the long term, the second phase will allow for a review of the salary cap efficacy and "exploring the potential" of allowing domestic transfers, and therefore transfer fees, between ALM clubs.
This assessment would take place "through the A-Leagues Professional Football Committees within the APL and PFA collective bargaining agreement", with FA invited to join as regulator.
Domestic transfers are currently not permitted between ALM clubs but FA chief executive James Johnson has long been keen on a domestic transfer system.
"Football Australia, APL, and PFA have identified that the clause is outdated and is no longer fit for purpose given the evolution of the Australian football landscape and the broader globalisation of the football economy," FA said in a statement.
"Since the introduction of the clause, the A-League has seen increased investment in A-League clubs by international football club ownership groups; A-League clubs have become more sophisticated; the value of A-League players on the global market has increased, increasing interest in players moving between A-League clubs; and longer A-League player contract terms."
Caceres is still playing, now for Sydney FC, with his career seemingly destined to outlast his clause.
Hot off a Socceroos call-up, Aziz Behich has penned a contract extension with — Isuzu UTE A-League (@aleaguemen) @MelbourneCity. 🔥��The skipper will remain at City until the 2026-27 season and is set to make his 100th club appearance this year."Melbourne City is my home and I'm delighted to have the… pic.twitter.com/9LVua6h1djAugust 30, 2024
Elsewhere, Melbourne City confirmed newly-appointed captain Aziz Behich has extended his contract until the end of the 2026-27 season.
Behich, who turns 34 in December, was already contracted for the upcoming campaign after spending a chunk of last season on loan at Saudi club Al-Nassr.
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