Premiership Rugby has announced that the salary cap for top-flight clubs will be increased to £5m for the 2014-15 season.
The money available to each team has risen by £500,000 on the current campaign.
Clubs are allowed to nominate one player to be exempt from the cap, while they are also able to apply for one injury replacement if a player has been sidelined for 12 weeks or more.
However, the £240,000 available in academy credits - money which covers players under the age of 24 - will remain unchanged.
"The Premiership Rugby clubs have approved this increase following the financial boost given by the new contract with BT Sport and the renewal of the competition's title sponsorship, with Aviva," said Premiership Rugby chief executive Mark McCafferty in an official statement.
"The objective of the salary cap is to control inflationary pressures on clubs' costs, and to provide a level playing field for clubs to ensure a competitive Aviva Premiership Rugby competition."
Clubs that are found guilty of breaching the salary cap could face disciplinary action.