CSK and RR were banned from the IPL for two seasons in July 2015 following some of their team owners' involvement in corruption.
Franchises will need to spend at least 75 per cent of the salary cap each season, and that each squad should contain between 18 and 25 players with maximum eight overseas players.
The total purse of each team will range from Rs 66 to 80 crores. For Dhoni and CSK fans, it means that MSD will don the yellow jersey once again.
The players of CSK and RR were shifted to new franchises, Rising Pune Supergiants and Gujarat Lions.
Following a two-year suspension, Rising Pune Supergiant roped in the wicket-keeper batsman during the 2016 edition of the IPL.
The decision was taken during the IPL Governing Council's meeting with the Committee of Administrators (CoA) here.
"An IPL Franchise is eligible to secure up to five players by virtue of a combination of Player Retention (Pre Player Auction) and Right to Match (RTM) (During the Player Auction)", BCCI acting cecretary Amitabh Choudhary said in a statement after the meeting. In September, The Indian Premier League (IPL) media rights were auctioned and it proved to be a windfall for the Board of Control for Cricket in India (BCCI). "In a way, we have found a middle path (with the possibility of buying back five players through retentions and RTMs)", IPL chairman Rajeev Shukla said after the meeting.
The auction reserve prices have also been increased, with a hike of Rs 10 lakh in the prices for uncapped players, which will now begin from Rs 20, 30 or 40 lakh. Interestingly, the GC chose to let the teams retain a maximum of 3 capped Indian cricketers.
The player rules for the Right to Match are maximum number of three Capped Indian players, maximum number of 2 overseas players, maximum number of 2 uncapped Indian players.
If two players are retained, the salary cap for the first and second player retained will Rs 12.5 crore and Rs 8.5 crore respectively. This is a departure from existing price tags, which saw the first retained player receive INR 12.5 crores with subsequent retainees costing the franchise 9.5, 7.5, 5.5 and 4 crores respectively.