The scheme is expected to come into force from the New Zealand tour which commences later this month.
The Cricket Board has allocated Rs. 15 million per annum for this scheme where the players will be categorised into three different classes for payments.
The national selectors will classify each player according to his experience and value.
Cricket Board sources said the move to contract the players was made to get them involved in the Board's development and coaching programs etc.
Contracting the players also does not give them many liberties to go and play cricket elsewhere without the prior permission of the Cricket Board.
The Cricket Board's Executive Commitee is expected to ratify this scheme when it meets on February 8.