A 60 per cent rise has been announced which will see the total amount increase from $13.2 million (£11.5 million/€13.1million) in 2022 to $21.1 million (£18.4 million/€21 million) in 2023.

Additionally, athletes can now improve their earnings in earlier rounds thanks to round-by-round prize money distributions.

According to ATP, these changes will help form a sustainable player pathway for those competing on the Challenger Tour.

"The Challenger Tour is the launchpad of men’s professional tennis," ATP chairman Andrea Gaudenzi said on the new changes.

 "Today’s announcement is a critical step forward for the entire ecosystem.

"The new plan increases earnings potential for players and improves the balance of tournament categories, surfaces and regions.

"It also puts a renewed focus on raising tournament standards.

"This is also just the beginning.

"Our team is committed to delivering further enhancements in the coming months and years."

Another significant change to the circuit is the reduction of the number of categories.

Instead of the Challenger 90 and 110 categories, the four main ones in 2023 will be Challenger 50, Challenger 75, Challenger 100 and Challenger 125, including the premium Challenger 175 events alongside ATP Masters 1000 tournaments in Indian Wells, Rome and Madrid.

The premium event is set to offer a prize money of $220,000 (£192737/€219,663).

Next year will also see the number of events go up from 183 to 195.

The governing body also plans to balance the tournaments with regards to surface types and regions.

These new changes, including a projected 170 per cent increase in the number of Challenger 100 and 125 events, is set to help fringe players move up the rankings ladder.

 Richard Glover, vice-president of ATP Challenger Tour, said more enhancements can be expected soon and the body is looking "forward to executing these reforms next season and building on this progress in the near future."