The Obama administration announced Tuesday that it would allow Cuban citizens to work in the United States and receive salaries from American companies, a decision that could have a profound effect on the way major league teams sign Cuban baseball players.

Under the new guidelines, which go into effect Wednesday, it will now be legal for franchises to sign contracts directly with Cuban ballplayers. Previously, Cuban players had to defect before they could sign with a major league team.

The signings will be lawful under the decades-old American embargo provided that the salaries are paid directly to players and that no money goes directly to the government, making it unclear whether Cuba would agree to such an arrangement for players still in the country.

While no rash of signings of players from inside Cuba is imminent, the new regulations promise to significantly alter the signing process for players who have already defected or who do so in the future.