Professional soccer took one of the most revolutionary steps in its history yesterday when FIFA, the game's governing body, announced that it is to abolish the transfer system, a move which could give players unprecedented power over clubs.

The decision by FIFA and other football organisations in Zurich yesterday means many top players stand to benefit from a massive wages increase.

Under plans agreed by football officials, players will be allowed to change clubs once a year, during a specific period lasting a few weeks, while contracts would be no longer than a year. The new rules will not come into effect immediately and will have serious implications for small clubs.

Clubs will no longer receive transfer fees for players, although some compensation might be paid, while clubs will be able to terminate players' contracts if a period of notice is served.

FIFA officials were meeting to discuss a response to the European Commission's competition commissioner, Mario Monti, who claims that the transfer system restricts freedom of movement, enshrined in the Treaty of Rome.

The commission, which has given football until September 20th to respond, claims that professional footballers should be like employees of any other organisation and should have the right to change clubs, provided they serve a period of notice.

In an attempt to settle the dispute with the commission and limit the damage it could have on football, FIFA agreed to end transfers for players over 24, while compensation will be paid to clubs for players between 18 to 24.

FIFA's president, Sepp Blatter, who met representatives of players and the European leagues in Zurich yesterday admitted that the transfer fee system was at an end.

Football officials also agreed yesterday to end international transfers of players under 18 in an attempt to prevent youngsters from developing countries being lured to Europe and then dumped if they do not match expectations.