New Zealand's five Super Rugby franchises will be able to contract up to two foreign players when the competition expands to 15 teams next year.
The New Zealand Rugby Union says the policy is designed to ensure a balance between providing depth and allowing the five teams to develop local players.
The policy includes some restrictions, such as no more than one foreign player can play in a specialist position such as tighthead prop or first five-eighth across New Zealand, Reuters reports.
Franchises can not recruit a foreign player where there is an equivalent New Zealand eligible player available.
Players who represent Pacific Island countries, such as Fiji, Samoa and Tonga, are not counted as foreign players under the policy.