The new system only applies to the ability to save songs to Spotify library. Individual playlists are still limited to 10,000 items and users can only download up to 10,000 songs on each of their five different devices for offline listening, reports The Verge.
Spotify has more than 50 million songs available to customers to stream at any time, until now, there was a hard limit of 10,000 songs that users could save to their own "Your Music" collections on Spotify for easy access.
After reaching the limit, if a user like a song or an album, "Epic collection my friend. There is no more room in Your Library. To save more, you will need to remove some songs or albums" message was presented to the users.
Some customers may still run into the "library full" notification, as the update has not rolled out to every account.
For years users have been requesting the removal of the limit, but Spotify had before now shown resistance to the idea.
The company recently said: "At the moment we don't have plans to extend the Your Music limit. The reason is that less than 1 per cent of users reach it."