The league will increase its salary cap to $1.5m per team in the 2023-24 season.

The move announced by the Premier Hockey Federation to double the salary cap is expected to deepen the talent pool and provide more room for better signings.

It also means that it will allow players the opportunity to earn a living wage. This increase will double each team’s current cap of $750,000 this season up to $1.5m.

The new plan is part of a three-year $25m commitment which has been approved by the league’s board of governors 11 months ago.

Commissioner Reagan Carey told The Associated Press (AP): “This is just another example of us going full steam ahead with what we know can be a great sport for an even greater audience and do more for the players in it.

“We consider this announcement a win for anyone who cares about women's sports, but especially women's hockey.”

The approval came at the Premier Hockey Federation winter meetings, and the jump in the salary cap represents a 900% increase since 2021-22.

Carey continued: “It's a big commitment and reflects the dedication of everybody that's involved with the PHF and understanding the importance of getting to this landmark number.

“I think this certainly demonstrates the strength of our league and the business development model that we've been working towards and continuing to create.”

The commissioner also revealed that all seven teams had exceeded 75% of their salary caps, with some having already reached the limit.

PHF Players' Association executive director Nicole Corriero told the AP: “This is an incredible development and a testament to the unwavering commitment of the people that are making this a reality.

“More importantly, the PA acknowledges the many past and current players that have served as pioneers for the league and sport as a whole. ... The success of this league and continued growth would not be possible without them.”