Sachin Tendulkar earns most of his money through endorsements

They will be graded in three tiers with the top players getting 6m rupees (£71,600) per year and the middle group earning just half that.

The lower tier will earn £17,900 a year but all contracted players will also get fees for individual matches.

"The players will feel financially secure," said leg-spinner Anil Kumble.

The contracts, to be reviewed annually, will be formally announced by Indian cricket chief Jagmohan Dalmiya after a meeting of the Board of Control for Cricket in India in New Delhi on 18 and 19 July.

BCCI secretary Karunakaran Nair said the graded system of payments, which has been under consideration for the past two years, will be valid from the Asia Cup tournament to be played in Sri Lanka from 16 July to 1 August.

Indian cricketers were until now paid only individual match fees.

A committee comprising the BCCI president, coach John Wright and chairman of selectors Syed Kirmani will decide who goes into which category.

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A core of senior batsmen - Tendulkar, captain Sourav Ganguly, Rahul Dravid, VVS Laxman and Virender Sehwag, plus Kumble - are likely to go into the top tier.

The contracts will be offered only to those who have played a minimum of three Tests or 10 one-day internationals.

Those who do not have contracts will also be eligible for international cricket and will only be paid match fees.

"This is the best thing to happen to Indian cricket," said Kumble, a veteran of 14 international seasons who helped draft the contracts.

"The players will not be worried where their next rupee would come from in case they were injured.

"It also benefits the board because the players will now be under the strict supervision of the BCCI even during the off-season.