The ARU has announced a new policy that will allow Australian Super 14 teams to recruit two foreign players.
Provinces will be allowed to sign one marquee foreigner that will never be available to play for the Wallabies and a developing player that has yet to represent his country at Test, Sevens or A-team level.
The developing player will be allowed to play for the Wallabies after three years of consecutive residency as per IRB regulations.
If a province does not wish to sign a marquee foreigner they will be allowed to sign two developing players, but it will not be able to sign two Test/Sevens/A-team players.
Teams wanting to sign any foreign player will need to apply to the ARU and the length of a marquee foreigners contract is set to a maximum of two years.
ARU Chairman Peter McGrath said the new policy will strengthen the Super 14 competition both on and off the field.
"There is no doubt the injection of world class foreign players will create added interest in the Super Rugby competition," said ARU chairman Peter McGrath.
"We're also confident overseas players will be excited about the potential opportunities."
"It will not stop foreign Test players continuing their international careers outside Australia."
"We will always protect the sanctity of Regulation 9 which gives a national body first call on their eligible players."
"However, the idea that marquee players might want to come to Australia is something we should allow our Provincial teams to explore."
"French flyhalf Frederic Michalak played with the Sharks in South Africa this year."
"Likewise if there are talented young players in other countries who would like to pursue their Rugby dreams in Australia and one day play for the Qantas Wallabies, then this policy change will also open the door to them."
ARU Managing Director and CEO John O'Neill the time was right to relax the prohibition on foreign players and said there had been precedents set for foreigners playing Super Rugby with Australian teams.
"Patricio Noriega played Test Rugby for Argentina before he joined the Brumbies in the early years of professionalism and Tiaan Strauss was a Springboks captain before heading to Australia and eventually playing for the NSW Waratahs," he said.
"That was back in the 1990's when players could represent a second country once they served three years of residency."
"IRB regulations no longer allow overseas Test players that same opportunity."
"As a result, we have had the doors locked to overseas players for several years."
"However, we have increased our Super Rugby footprint from three to four teams in the past couple of seasons."
"Moving forward we are also looking to further expand Super Rugby in partnership with South Africa and New Zealand and to generate further interest in what we believe is the best competition of its kind in the world."