Clubs with players on international duty will be paid around £130m in compensation over the next six years by governing bodies Fifa and Uefa.
The ground-breaking agreement was announced in a bid to put an end to long running club v country rows.
In return, the G14 group of Europe's 18 most powerful clubs plans to drop legal disputes with Fifa and Uefa.
Uefa has said Euro 2008 will be worth more than £32m to clubs from the 53 national associations in Europe.
Clubs who release players for the European Championship will receive up to £3000 per player, per day in compensation and will be split three ways, said BBC Radio 5 Live sports news correspondent Gordon Farquhar.
"A third will go to club who holds the player's registration, a third to the club that owned the player the previous season and the final third to the club who registered the player up to two years previously," he said.
"That, in many cases, will be the same team. The pot will increase to £40m for the Euro 2012 tournament."
Uefa president Michel Platini said: "Clubs who provide Uefa and Fifa with certain amounts of money through these players should get some compensation and share in these profits."
Fifa is expected to announce a similar structure for the 2010 World Cup.