diff --git a/meta/classes/base.bbclass b/meta/classes/base.bbclass
index 27c1d6168d4..bfc7087a189 100644
--- a/meta/classes/base.bbclass
+++ b/meta/classes/base.bbclass
@@ -595,46 +595,35 @@ python () {
         if check_license and bad_licenses:
             bad_licenses = expand_wildcard_licenses(d, bad_licenses)
 
-            whitelist = []
-            for lic in bad_licenses:
-                spdx_license = return_spdx(d, lic)
-                whitelist.extend((d.getVar("WHITELIST_" + lic) or "").split())
-                if spdx_license:
-                    whitelist.extend((d.getVar("WHITELIST_" + spdx_license) or "").split())
-
-            if pn in whitelist:
-                '''
-                We need to track what we are whitelisting and why. If pn is
-                incompatible we need to be able to note that the image that
-                is created may infact contain incompatible licenses despite
-                INCOMPATIBLE_LICENSE being set.
-                '''
-                bb.note("Including %s as buildable despite it having an incompatible license because it has been whitelisted" % pn)
-            else:
-                pkgs = d.getVar('PACKAGES').split()
-                skipped_pkgs = {}
-                unskipped_pkgs = []
-                for pkg in pkgs:
-                    incompatible_lic = incompatible_license(d, bad_licenses, pkg)
-                    if incompatible_lic:
-                        skipped_pkgs[pkg] = incompatible_lic
-                    else:
-                        unskipped_pkgs.append(pkg)
-                if unskipped_pkgs:
-                    for pkg in skipped_pkgs:
-                        bb.debug(1, "Skipping the package %s at do_rootfs because of incompatible license(s): %s" % (pkg, ' '.join(skipped_pkgs[pkg])))
-                        d.setVar('_exclude_incompatible-' + pkg, ' '.join(skipped_pkgs[pkg]))
-                    for pkg in unskipped_pkgs:
-                        bb.debug(1, "Including the package %s" % pkg)
+            exceptions = (d.getVar("INCOMPATIBLE_LICENSE_EXCEPTIONS") or "").split()
+
+            pkgs = d.getVar('PACKAGES').split()
+            skipped_pkgs = {}
+            unskipped_pkgs = []
+            for pkg in pkgs:
+                remaining_bad_licenses = oe.license.apply_pkg_license_exception(pkg, bad_licenses, exceptions)
+
+                incompatible_lic = incompatible_license(d, remaining_bad_licenses, pkg)
+                if incompatible_lic:
+                    skipped_pkgs[pkg] = incompatible_lic
                 else:
-                    incompatible_lic = incompatible_license(d, bad_licenses)
-                    for pkg in skipped_pkgs:
-                        incompatible_lic += skipped_pkgs[pkg]
-                    incompatible_lic = sorted(list(set(incompatible_lic)))
-
-                    if incompatible_lic:
-                        bb.debug(1, "Skipping recipe %s because of incompatible license(s): %s" % (pn, ' '.join(incompatible_lic)))
-                        raise bb.parse.SkipRecipe("it has incompatible license(s): %s" % ' '.join(incompatible_lic))
+                    unskipped_pkgs.append(pkg)
+
+            if unskipped_pkgs:
+                for pkg in skipped_pkgs:
+                    bb.debug(1, "Skipping the package %s at do_rootfs because of incompatible license(s): %s" % (pkg, ' '.join(skipped_pkgs[pkg])))
+                    d.setVar('_exclude_incompatible-' + pkg, ' '.join(skipped_pkgs[pkg]))
+                for pkg in unskipped_pkgs:
+                    bb.debug(1, "Including the package %s" % pkg)
+            else:
+                incompatible_lic = incompatible_license(d, bad_licenses)
+                for pkg in skipped_pkgs:
+                    incompatible_lic += skipped_pkgs[pkg]
+                incompatible_lic = sorted(list(set(incompatible_lic)))
+
+                if incompatible_lic:
+                    bb.debug(1, "Skipping recipe %s because of incompatible license(s): %s" % (pn, ' '.join(incompatible_lic)))
+                    raise bb.parse.SkipRecipe("it has incompatible license(s): %s" % ' '.join(incompatible_lic))
 
     needsrcrev = False
     srcuri = d.getVar('SRC_URI')
diff --git a/meta/classes/license_image.bbclass b/meta/classes/license_image.bbclass
index bf70bee99bb..0a5ea0a2fbc 100644
--- a/meta/classes/license_image.bbclass
+++ b/meta/classes/license_image.bbclass
@@ -54,28 +54,23 @@ def write_license_files(d, license_manifest, pkg_dic, rootfs=True):
     bad_licenses = (d.getVar("INCOMPATIBLE_LICENSE") or "").split()
     bad_licenses = expand_wildcard_licenses(d, bad_licenses)
 
-    whitelist = []
-    for lic in bad_licenses:
-        whitelist.extend((d.getVar("WHITELIST_" + lic) or "").split())
-
+    exceptions = (d.getVar("INCOMPATIBLE_LICENSE_EXCEPTIONS") or "").split()
     with open(license_manifest, "w") as license_file:
         for pkg in sorted(pkg_dic):
-            if bad_licenses and pkg not in whitelist:
-                try:
-                    licenses = incompatible_pkg_license(d, bad_licenses, pkg_dic[pkg]["LICENSE"])
-                    if licenses:
-                        bb.fatal("Package %s cannot be installed into the image because it has incompatible license(s): %s" %(pkg, ' '.join(licenses)))
-                    (pkg_dic[pkg]["LICENSE"], pkg_dic[pkg]["LICENSES"]) = \
-                        oe.license.manifest_licenses(pkg_dic[pkg]["LICENSE"],
-                        bad_licenses, canonical_license, d)
-                except oe.license.LicenseError as exc:
-                    bb.fatal('%s: %s' % (d.getVar('P'), exc))
+            remaining_bad_licenses = oe.license.apply_pkg_license_exception(pkg, bad_licenses, exceptions)
+            incompatible_licenses = incompatible_pkg_license(d, remaining_bad_licenses, pkg_dic[pkg]["LICENSE"])
+            if incompatible_licenses:
+                bb.fatal("Package %s cannot be installed into the image because it has incompatible license(s): %s" %(pkg, ' '.join(incompatible_licenses)))
             else:
-                pkg_dic[pkg]["LICENSES"] = re.sub(r'[|&()*]', ' ', pkg_dic[pkg]["LICENSE"])
-                pkg_dic[pkg]["LICENSES"] = re.sub(r'  *', ' ', pkg_dic[pkg]["LICENSES"])
-                pkg_dic[pkg]["LICENSES"] = pkg_dic[pkg]["LICENSES"].split()
-                if pkg in whitelist:
-                    oe.qa.handle_error('license-incompatible', "Including %s with an incompatible license %s into the image, because it has been whitelisted." %(pkg, pkg_dic[pkg]["LICENSE"]), d)
+                incompatible_licenses = incompatible_pkg_license(d, bad_licenses, pkg_dic[pkg]["LICENSE"])
+                if incompatible_licenses:
+                    oe.qa.handle_error('license-incompatible', "Including %s with incompatible license(s) %s into the image, because it has been allowed by exception list." %(pkg, ' '.join(incompatible_licenses)), d)
+            try:
+                (pkg_dic[pkg]["LICENSE"], pkg_dic[pkg]["LICENSES"]) = \
+                    oe.license.manifest_licenses(pkg_dic[pkg]["LICENSE"],
+                    remaining_bad_licenses, canonical_license, d)
+            except oe.license.LicenseError as exc:
+                bb.fatal('%s: %s' % (d.getVar('P'), exc))
 
             if not "IMAGE_MANIFEST" in pkg_dic[pkg]:
                 # Rootfs manifest
diff --git a/meta/classes/multilib.bbclass b/meta/classes/multilib.bbclass
index 1ad654f546d..5859ca8d21e 100644
--- a/meta/classes/multilib.bbclass
+++ b/meta/classes/multilib.bbclass
@@ -75,12 +75,12 @@ python multilib_virtclass_handler () {
     e.data.setVar("PN", variant + "-" + e.data.getVar("PN", False))
     e.data.setVar("OVERRIDES", e.data.getVar("OVERRIDES", False) + override)
 
-    # Expand WHITELIST_GPL-3.0 with multilib prefix
-    pkgs = e.data.getVar("WHITELIST_GPL-3.0")
+    # Expand INCOMPATIBLE_LICENSE_EXCEPTIONS with multilib prefix
+    pkgs = e.data.getVar("INCOMPATIBLE_LICENSE_EXCEPTIONS")
     if pkgs:
         for pkg in pkgs.split():
             pkgs += " " + variant + "-" + pkg
-        e.data.setVar("WHITELIST_GPL-3.0", pkgs)
+        e.data.setVar("INCOMPATIBLE_LICENSE_EXCEPTIONS", pkgs)
 
     # DEFAULTTUNE can change TARGET_ARCH override so expand this now before update_data
     newtune = e.data.getVar("DEFAULTTUNE:" + "virtclass-multilib-" + variant, False)
diff --git a/meta/conf/bitbake.conf b/meta/conf/bitbake.conf
index 6fb7bfeb23c..7705415a4f5 100644
--- a/meta/conf/bitbake.conf
+++ b/meta/conf/bitbake.conf
@@ -110,6 +110,17 @@ BB_RENAMED_VARIABLES[INHERIT_BLACKLIST] = "is a deprecated variable and no longe
 BB_RENAMED_VARIABLES[TUNEABI_WHITELIST] = "is a deprecated variable and support has been removed"
 BB_RENAMED_VARIABLES[LICENSE_FLAGS_WHITELIST] = "LICENSE_FLAGS_ACCEPTED"
 
+BB_RENAMED_VARIABLES[WHITELIST_GPL-3.0-only] = "INCOMPATIBLE_LICENSE_EXCEPTIONS"
+BB_RENAMED_VARIABLES[WHITELIST_GPL-3.0-or-later] = "INCOMPATIBLE_LICENSE_EXCEPTIONS"
+BB_RENAMED_VARIABLES[WHITELIST_LGPL-3.0-only] = "INCOMPATIBLE_LICENSE_EXCEPTIONS"
+BB_RENAMED_VARIABLES[WHITELIST_LGPL-3.0-or-later] = "INCOMPATIBLE_LICENSE_EXCEPTIONS"
+
+# These are deprecated version and should be updated to approved names
+BB_RENAMED_VARIABLES[WHITELIST_GPL-3.0] = "is deprecated, convert to INCOMPATIBLE_LICENSE_EXCEPTIONS = '<pkg>:GPL-3.0-only'"
+BB_RENAMED_VARIABLES[WHITELIST_GPL-3.0+] = "is deprecated, convert to INCOMPATIBLE_LICENSE_EXCEPTIONS = '<pkg>:GPL-3.0-or-later'"
+BB_RENAMED_VARIABLES[WHITELIST_LGPL-3.0] = "is deprecated, convert to INCOMPATIBLE_LICENSE_EXCEPTIONS = '<pkg>:LGPL-3.0-only'"
+BB_RENAMED_VARIABLES[WHITELIST_LGPL-3.0+] = "is deprecated, convert to INCOMPATIBLE_LICENSE_EXCEPTIONS = '<pkg>:LGPL-3.0-or-later'"
+
 ##################################################################
 # Architecture-dependent build variables.
 ##################################################################
diff --git a/meta/lib/oe/license.py b/meta/lib/oe/license.py
index 8955cbdeb24..29412dfe46b 100644
--- a/meta/lib/oe/license.py
+++ b/meta/lib/oe/license.py
@@ -242,3 +242,8 @@ def list_licenses(licensestr):
     except SyntaxError as exc:
         raise LicenseSyntaxError(licensestr, exc)
     return visitor.licenses
+
+def apply_pkg_license_exception(pkg, bad_licenses, exceptions):
+    """Return remaining bad licenses after removing any package exceptions"""
+
+    return [lic for lic in bad_licenses if pkg + ':' + lic not in exceptions]
diff --git a/meta/lib/oeqa/selftest/cases/incompatible_lic.py b/meta/lib/oeqa/selftest/cases/incompatible_lic.py
index fd3b3f409e3..c68f920555f 100644
--- a/meta/lib/oeqa/selftest/cases/incompatible_lic.py
+++ b/meta/lib/oeqa/selftest/cases/incompatible_lic.py
@@ -110,8 +110,8 @@ INCOMPATIBLE_LICENSE:pn-core-image-minimal = "GPL-3.0 LGPL-3.0"
 
         bitbake('core-image-minimal')
 
-    def test_bash_whitelist(self):
-        self.write_config(self.default_config() + '\nWHITELIST_GPL-3.0:pn-core-image-minimal = "bash"')
+    def test_bash_license_exceptions(self):
+        self.write_config(self.default_config() + '\nINCOMPATIBLE_LICENSE_EXCEPTIONS:pn-core-image-minimal = "bash:GPL-3.0-or-later"')
 
         bitbake('core-image-minimal')
 
