UEFA has confirmed the Nations League top tier will be expanded to 16 teams - saving Germany from relegation.
Following an executive committee meeting in Ljubljana, Slovenia, on Tuesday, the European governing body announced a new league structure comprising 16 teams in Leagues A, B and C and seven teams in League D as of the 2020/21 season.
The teams are allocated to leagues based on the overall ranking following the 2018-19 inaugural UEFA Nations League.
This change to the format follows a consultation process which involved all of UEFA's 55 national associations and reflects upon their desire to further minimise the number of friendly matches.
In addition, it enhances sporting fairness as all teams in the same group will play their last match on the same day and at the same time.
The successful concept of the finals remains untouched, with the four group winners of League A playing each other to determine the UEFA Nations League winners.
It means the four relegated League A teams - Germany, Croatia, Poland and Iceland - retain their top-flight status.
They will be joined by the four promoted League B sides Ukraine, Sweden, Bosnia-Herzegovina and Denmark.
Germany finished bottom of Group One last season after failing to win a single game against France and the Netherlands, who were eventual runners-up.
Iceland failed to pick up a single point against Switzerland and Belgium in Group Two while Poland also failed to register a victory in Group Three against eventual Nations League victors Portugal and Italy.
Croatia lost out in a tight Group Four with England, who were eventually placed third in the competition, and Spain.