The Premier League has confirmed that players with contracts expiring on June 30 will be able to extend their agreements until the end of the season.
A vote took place at Monday's shareholders meeting where all 20 clubs discussed the issue as part of "Project Restart."
The Premier League confirmed on Thursday that clubs were in unanimous agreement over approving an extension.
A mutual agreement between the club and player must be reached by June 23 for contracts to be extended.
Significantly, clubs cannot force a player to stay at a club beyond June 30 and therefore they are free to leave after that date if required.
"What we decided today is to ensure as far as possible that clubs complete the season with the same squad they had available prior to the suspension of the campaign," Premier League chief executive Richard Masters said.
"Players can extend their contracts beyond June 30 until the end of the season, but it must be agreed by both parties."
There are estimated to be 57 players out of contract on June 30. Chelsea winger Willian is among those to have publicly declared he will complete the campaign but teammates Pedro and Olivier Giroud are also in the same situation with their futures unclear.
Other clubs have loan deals which are due to expire, including Arsenal's Dani Ceballos. He is due to return to Real Madrid but sources have told ESPN that the Gunners are confident of agreeing an extension with his parent club.
Talks are ongoing over the league's resumption but concerns over player safety and the time required to rebuild match fitness following a seven-week hiatus due to the coronavirus pandemic has raised doubts over whether the current target date to resume, June 12, will have to be pushed back.
All sides are keen for football to resume in England but there remain a variety of issues to resolve including safely organising group training, where the matches will be played and the protocol if a player tests positive for the coronavirus.
FIFA are not sanctioning any players to be registered with another club until the 2019-20 season is completed.