In the biggest reform of exams for decades, GCSE grades are to be replaced with a numbered system to allow examiners to distinguish between the brightest students.
The new scale will see an extra grade added into a revamped qualifications system from one to nine - with nine being the highest mark available.
Currently, in some subjects such as maths and science, high numbers of pupils achieve A* and A grades which makes it difficult to pick out the top students, it was suggested.
Glenys Stacey, chief executive of regulator Ofqual, said in these cases "you then begin to question whether the qualification is doing its job in differentiating sufficiently your most able students".
The change could also leave the door open for an extra grade to be introduced in the future if necessary, also though Ms Stacey stressed this was not why the new system had been chosen.
In a report on the changes, Ofqual said: "Currently there is a 'bunching' of grades as most students are awarded grades B, C and D. Adding in an extra grade will improve the spread of grades in this area."
High numbers of A* grades makes it difficult to pick out the best students It added the move to a numerical system would signal the revamped GCSEs are a new qualification, which it said would be less apparent if the grading system remained the same.
The first three subjects to be revamped - English literature, English language and maths - are due to be taught in secondary schools in England from 2015, with the first exams taken in the summer of 2017. These three subjects account for around a third of GCSEs awarded in England each year.
A year later, in 2016, new GCSEs in science, history, geography and some modern foreign languages, as well as other subjects often taught in schools like religious education and art, will be introduced to schools.
Coursework is to be removed from the English language GCSE, with the qualification assessed entirely by exam. As with the current system, students' speaking skills will be tested, but will not count towards the overall grade.
A fifth of marks (20%) for the written exams will be dedicated to spelling, punctuation and grammar.
Malcolm Trobe, deputy general secretary of the Association of School and College Leaders, said: "There is much to welcome in today's announcement, especially the measured approach Ofqual has taken to this significant task.
"We have always agreed that GCSE can be improved to better prepare students to meet the needs of the world we live in today. But the constant tinkering with GCSEs we have had in the past has not been helpful."
Ofqual announced that a consultation on how the new system will compare to the old - for example which number is equivalent to a C - will begin in December.
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