The ranking model of the long-awaited platform will see the position of sponsored search results determined by a score for quality of creative and historic click data as well as bidding price.
The system, launched in the US in February, is designed to give a fairer market with the top results determined by more than just who spends the most money.
Yahoo! Search Marketing sales director for Northern Europe, Richard Firminger, said: "It is about providing the best consumer experience and the most relevant results and a better value of leads for advertisers."
He added that in some cases, due to the ranking model, advertisers could expect bidding prices to go down.
The system is comparable with Google's search platform, which also allocates a quality score for its sponsored search results.
The roll-out of Panama will happen in two phases - agencies and advertisers will be migrated to the new platform, then Yahoo! will introduce the new ranking model.
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