UEFA president Michel Platini insists it is 'logical' for clubs to be compensated for letting their players appear in the final stages of major tournaments.
Starting at Euro 2008 this summer, tournament organisers - in this case UEFA - will pay clubs £2,970 for each day a player is involved.
The cash will be shared between any clubs a player has played for in the two years prior to the tournament. Therefore, should a player have moved, their former club would still be compensated for his participation in a qualifying campaign.
The deal was announced by Platini at the launch of the European Club Association, a body which will replace the elite G14 pressure group and unite Europe's wealthiest clubs, UEFA and world governing body FIFA in an unprecedented peace treaty.
Platini said: 'It was utterly unthinkable to me that players could not be released by their clubs for international tournaments. But it was also logical to give clubs some kind of compensation and a share of the profits.'
Karl-Heinz Rummenigge, the chairman of the new ECA and former West Germany international, said: 'This is a day of reunification for the football family. It is very much down to Michel Platini because he has propounded the principle of giving and sharing.'
UEFA have set aside £32.3million in compensation for clubs at Euro 2008 in Austria and Switzerland and a further £41million for the 2012 tournament in Poland and Ukraine.
Platini announced that FIFA would be contributing a combined total of £56.6million for the 2010 World Cup in South Africa and the 2014 event in Brazil.
The France legend added: 'There is a new generation of people leading football organisations and clubs who have come from football and not politics. I believe football is going to change.'
The move will be seen as a resounding victory for Europe's top clubs, who had formed the G14 in September 2000 to lobby for more power and greater rewards from the way football was run.
The G14 will now disband at their final meeting on February 15 and bring to an end three court actions against FIFA regarding compensation for players injured on international duty.
The second match of international double header weeks - usually played on a Wednesday - will be moved to Tuesday so that players can return to clubs sooner for domestic matches the following weekend.