In a move that figures to save teams roughly $30million, MLB is cutting its amateur draft from 40 rounds to five this year, according to multiple reports.

The decision comes after a March 26 agreement between MLB and the players' association that allowed MLB to dictate the length of this year's draft.

There were discussions of a potential 10-round draft this year due to the coronavirus pandemic, but the sides were unable to reach an agreement on the proposal.

Shortening the draft to five rounds means just 160 players will be drafted, and the combined value of their signing bonus pools is $235,906,800. The amount of signing bonus pool money eliminated is $29,578,100.

As part of the agreement, all amateur players who go undrafted in 2020 would be eligible to sign for a maximum of $20,000. Teams can sign an unlimited number of undrafted players, but this decision will likely prompt more high school players to elect to go to college.

The draft was cut to 50 rounds in 1998 and to 40 rounds in 2012. This year's five-round draft will take place on June 10-11.