diff --git a/management/server/token_mgr.go b/management/server/token_mgr.go
index 8a6648a3a..ef8276b59 100644
--- a/management/server/token_mgr.go
+++ b/management/server/token_mgr.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"crypto/sha1"
 	"crypto/sha256"
+	"encoding/base64"
 	"fmt"
 	"sync"
 	"time"
@@ -12,6 +13,7 @@ import (
 
 	"github.com/netbirdio/netbird/management/proto"
 	auth "github.com/netbirdio/netbird/relay/auth/hmac"
+	authv2 "github.com/netbirdio/netbird/relay/auth/hmac/v2"
 )
 
 const defaultDuration = 12 * time.Hour
@@ -30,7 +32,7 @@ type TimeBasedAuthSecretsManager struct {
 	turnCfg        *TURNConfig
 	relayCfg       *Relay
 	turnHmacToken  *auth.TimedHMAC
-	relayHmacToken *auth.TimedHMAC
+	relayHmacToken *authv2.Generator
 	updateManager  *PeersUpdateManager
 	turnCancelMap  map[string]chan struct{}
 	relayCancelMap map[string]chan struct{}
@@ -63,7 +65,11 @@ func NewTimeBasedAuthSecretsManager(updateManager *PeersUpdateManager, turnCfg *
 			duration = defaultDuration
 		}
 
-		mgr.relayHmacToken = auth.NewTimedHMAC(relayCfg.Secret, duration)
+		hashedSecret := sha256.Sum256([]byte(relayCfg.Secret))
+		var err error
+		if mgr.relayHmacToken, err = authv2.NewGenerator(authv2.AuthAlgoHMACSHA256, hashedSecret[:], duration); err != nil {
+			log.Errorf("failed to create relay token generator: %s", err)
+		}
 	}
 
 	return mgr
@@ -76,7 +82,7 @@ func (m *TimeBasedAuthSecretsManager) GenerateTurnToken() (*Token, error) {
 	}
 	turnToken, err := m.turnHmacToken.GenerateToken(sha1.New)
 	if err != nil {
-		return nil, fmt.Errorf("failed to generate TURN token: %s", err)
+		return nil, fmt.Errorf("generate TURN token: %s", err)
 	}
 	return (*Token)(turnToken), nil
 }
@@ -86,11 +92,15 @@ func (m *TimeBasedAuthSecretsManager) GenerateRelayToken() (*Token, error) {
 	if m.relayHmacToken == nil {
 		return nil, fmt.Errorf("relay configuration is not set")
 	}
-	relayToken, err := m.relayHmacToken.GenerateToken(sha256.New)
+	relayToken, err := m.relayHmacToken.GenerateToken()
 	if err != nil {
-		return nil, fmt.Errorf("failed to generate relay token: %s", err)
+		return nil, fmt.Errorf("generate relay token: %s", err)
 	}
-	return (*Token)(relayToken), nil
+
+	return &Token{
+		Payload:   string(relayToken.Payload),
+		Signature: base64.StdEncoding.EncodeToString(relayToken.Signature),
+	}, nil
 }
 
 func (m *TimeBasedAuthSecretsManager) cancelTURN(peerID string) {
@@ -200,7 +210,7 @@ func (m *TimeBasedAuthSecretsManager) pushNewTURNTokens(ctx context.Context, pee
 }
 
 func (m *TimeBasedAuthSecretsManager) pushNewRelayTokens(ctx context.Context, peerID string) {
-	relayToken, err := m.relayHmacToken.GenerateToken(sha256.New)
+	relayToken, err := m.relayHmacToken.GenerateToken()
 	if err != nil {
 		log.Errorf("failed to generate relay token for peer '%s': %s", peerID, err)
 		return
@@ -210,8 +220,8 @@ func (m *TimeBasedAuthSecretsManager) pushNewRelayTokens(ctx context.Context, pe
 		WiretrusteeConfig: &proto.WiretrusteeConfig{
 			Relay: &proto.RelayConfig{
 				Urls:           m.relayCfg.Addresses,
-				TokenPayload:   relayToken.Payload,
-				TokenSignature: relayToken.Signature,
+				TokenPayload:   string(relayToken.Payload),
+				TokenSignature: base64.StdEncoding.EncodeToString(relayToken.Signature),
 			},
 			// omit Turns to avoid updates there
 		},
diff --git a/management/server/token_mgr_test.go b/management/server/token_mgr_test.go
index d59fd3a3f..3e63346c2 100644
--- a/management/server/token_mgr_test.go
+++ b/management/server/token_mgr_test.go
@@ -63,7 +63,8 @@ func TestTimeBasedAuthSecretsManager_GenerateCredentials(t *testing.T) {
 		t.Errorf("expected generated relay signature not to be empty, got empty")
 	}
 
-	validateMAC(t, sha256.New, relayCredentials.Payload, relayCredentials.Signature, []byte(secret))
+	hashedSecret := sha256.Sum256([]byte(secret))
+	validateMAC(t, sha256.New, relayCredentials.Payload, relayCredentials.Signature, hashedSecret[:])
 }
 
 func TestTimeBasedAuthSecretsManager_SetupRefresh(t *testing.T) {
diff --git a/relay/auth/allow/allow_all.go b/relay/auth/allow/allow_all.go
index 92845818b..2d30c59c9 100644
--- a/relay/auth/allow/allow_all.go
+++ b/relay/auth/allow/allow_all.go
@@ -1,12 +1,14 @@
 package allow
 
-import "hash"
-
 // Auth is a Validator that allows all connections.
 // Used this for testing purposes only.
 type Auth struct {
 }
 
-func (a *Auth) Validate(func() hash.Hash, any) error {
+func (a *Auth) Validate(any) error {
+	return nil
+}
+
+func (a *Auth) ValidateHelloMsgType(any) error {
 	return nil
 }
diff --git a/relay/auth/hmac/store.go b/relay/auth/hmac/store.go
index 36c195a7b..169b8d6b0 100644
--- a/relay/auth/hmac/store.go
+++ b/relay/auth/hmac/store.go
@@ -1,9 +1,11 @@
 package hmac
 
 import (
+	"encoding/base64"
+	"fmt"
 	"sync"
 
-	log "github.com/sirupsen/logrus"
+	v2 "github.com/netbirdio/netbird/relay/auth/hmac/v2"
 )
 
 // TokenStore is a simple in-memory store for token
@@ -20,12 +22,18 @@ func (a *TokenStore) UpdateToken(token *Token) error {
 		return nil
 	}
 
-	t, err := marshalToken(*token)
+	sig, err := base64.StdEncoding.DecodeString(token.Signature)
 	if err != nil {
-		log.Debugf("failed to marshal token: %s", err)
-		return err
+		return fmt.Errorf("decode signature: %w", err)
 	}
-	a.token = t
+
+	tok := v2.Token{
+		AuthAlgo:  v2.AuthAlgoHMACSHA256,
+		Signature: sig,
+		Payload:   []byte(token.Payload),
+	}
+
+	a.token = tok.Marshal()
 	return nil
 }
 
diff --git a/relay/auth/hmac/token.go b/relay/auth/hmac/token.go
index e2e62b84e..581b1d6fd 100644
--- a/relay/auth/hmac/token.go
+++ b/relay/auth/hmac/token.go
@@ -18,17 +18,6 @@ type Token struct {
 	Signature string
 }
 
-func marshalToken(token Token) ([]byte, error) {
-	var buffer bytes.Buffer
-	encoder := gob.NewEncoder(&buffer)
-	err := encoder.Encode(token)
-	if err != nil {
-		log.Debugf("failed to marshal token: %s", err)
-		return nil, fmt.Errorf("failed to marshal token: %w", err)
-	}
-	return buffer.Bytes(), nil
-}
-
 func unmarshalToken(payload []byte) (Token, error) {
 	var creds Token
 	buffer := bytes.NewBuffer(payload)
diff --git a/relay/auth/hmac/v2/algo.go b/relay/auth/hmac/v2/algo.go
new file mode 100644
index 000000000..c379c2bd7
--- /dev/null
+++ b/relay/auth/hmac/v2/algo.go
@@ -0,0 +1,40 @@
+package v2
+
+import (
+	"crypto/sha256"
+	"hash"
+)
+
+const (
+	AuthAlgoUnknown AuthAlgo = iota
+	AuthAlgoHMACSHA256
+)
+
+type AuthAlgo uint8
+
+func (a AuthAlgo) String() string {
+	switch a {
+	case AuthAlgoHMACSHA256:
+		return "HMAC-SHA256"
+	default:
+		return "Unknown"
+	}
+}
+
+func (a AuthAlgo) New() func() hash.Hash {
+	switch a {
+	case AuthAlgoHMACSHA256:
+		return sha256.New
+	default:
+		return nil
+	}
+}
+
+func (a AuthAlgo) Size() int {
+	switch a {
+	case AuthAlgoHMACSHA256:
+		return sha256.Size
+	default:
+		return 0
+	}
+}
diff --git a/relay/auth/hmac/v2/generator.go b/relay/auth/hmac/v2/generator.go
new file mode 100644
index 000000000..827532730
--- /dev/null
+++ b/relay/auth/hmac/v2/generator.go
@@ -0,0 +1,45 @@
+package v2
+
+import (
+	"crypto/hmac"
+	"fmt"
+	"hash"
+	"strconv"
+	"time"
+)
+
+type Generator struct {
+	algo       func() hash.Hash
+	algoType   AuthAlgo
+	secret     []byte
+	timeToLive time.Duration
+}
+
+func NewGenerator(algo AuthAlgo, secret []byte, timeToLive time.Duration) (*Generator, error) {
+	algoFunc := algo.New()
+	if algoFunc == nil {
+		return nil, fmt.Errorf("unsupported auth algorithm: %s", algo)
+	}
+	return &Generator{
+		algo:       algoFunc,
+		algoType:   algo,
+		secret:     secret,
+		timeToLive: timeToLive,
+	}, nil
+}
+
+func (g *Generator) GenerateToken() (*Token, error) {
+	expirationTime := time.Now().Add(g.timeToLive).Unix()
+
+	payload := []byte(strconv.FormatInt(expirationTime, 10))
+
+	h := hmac.New(g.algo, g.secret)
+	h.Write(payload)
+	signature := h.Sum(nil)
+
+	return &Token{
+		AuthAlgo:  g.algoType,
+		Signature: signature,
+		Payload:   payload,
+	}, nil
+}
diff --git a/relay/auth/hmac/v2/hmac_test.go b/relay/auth/hmac/v2/hmac_test.go
new file mode 100644
index 000000000..40336363f
--- /dev/null
+++ b/relay/auth/hmac/v2/hmac_test.go
@@ -0,0 +1,110 @@
+package v2
+
+import (
+	"strconv"
+	"testing"
+	"time"
+)
+
+func TestGenerateCredentials(t *testing.T) {
+	secret := "supersecret"
+	timeToLive := 1 * time.Hour
+	g, err := NewGenerator(AuthAlgoHMACSHA256, []byte(secret), timeToLive)
+	if err != nil {
+		t.Fatalf("failed to create generator: %v", err)
+	}
+
+	token, err := g.GenerateToken()
+	if err != nil {
+		t.Fatalf("expected no error, got %v", err)
+	}
+
+	if len(token.Payload) == 0 {
+		t.Fatalf("expected non-empty payload")
+	}
+
+	_, err = strconv.ParseInt(string(token.Payload), 10, 64)
+	if err != nil {
+		t.Fatalf("expected payload to be a valid unix timestamp, got %v", err)
+	}
+}
+
+func TestValidateCredentials(t *testing.T) {
+	secret := "supersecret"
+	timeToLive := 1 * time.Hour
+	g, err := NewGenerator(AuthAlgoHMACSHA256, []byte(secret), timeToLive)
+	if err != nil {
+		t.Fatalf("failed to create generator: %v", err)
+	}
+
+	token, err := g.GenerateToken()
+	if err != nil {
+		t.Fatalf("expected no error, got %v", err)
+	}
+
+	v := NewValidator([]byte(secret))
+	if err := v.Validate(token.Marshal()); err != nil {
+		t.Fatalf("expected valid token: %s", err)
+	}
+}
+
+func TestInvalidSignature(t *testing.T) {
+	secret := "supersecret"
+	timeToLive := 1 * time.Hour
+	g, err := NewGenerator(AuthAlgoHMACSHA256, []byte(secret), timeToLive)
+	if err != nil {
+		t.Fatalf("failed to create generator: %v", err)
+	}
+
+	token, err := g.GenerateToken()
+	if err != nil {
+		t.Fatalf("expected no error, got %v", err)
+	}
+
+	token.Signature = []byte{0, 1, 2, 3, 4, 5, 6, 7, 8, 9}
+
+	v := NewValidator([]byte(secret))
+	if err := v.Validate(token.Marshal()); err == nil {
+		t.Fatalf("expected valid token: %s", err)
+	}
+}
+
+func TestExpired(t *testing.T) {
+	secret := "supersecret"
+	timeToLive := -1 * time.Hour
+	g, err := NewGenerator(AuthAlgoHMACSHA256, []byte(secret), timeToLive)
+	if err != nil {
+		t.Fatalf("failed to create generator: %v", err)
+	}
+
+	token, err := g.GenerateToken()
+	if err != nil {
+		t.Fatalf("expected no error, got %v", err)
+	}
+
+	v := NewValidator([]byte(secret))
+	if err := v.Validate(token.Marshal()); err == nil {
+		t.Fatalf("expected valid token: %s", err)
+	}
+}
+
+func TestInvalidPayload(t *testing.T) {
+	secret := "supersecret"
+	timeToLive := 1 * time.Hour
+	g, err := NewGenerator(AuthAlgoHMACSHA256, []byte(secret), timeToLive)
+	if err != nil {
+		t.Fatalf("failed to create generator: %v", err)
+	}
+
+	token, err := g.GenerateToken()
+	if err != nil {
+		t.Fatalf("expected no error, got %v", err)
+	}
+
+	token.Payload = []byte{0, 1, 2, 3, 4, 5, 6, 7, 8, 9}
+
+	v := NewValidator([]byte(secret))
+	if err := v.Validate(token.Marshal()); err == nil {
+		t.Fatalf("expected invalid token due to invalid payload")
+	}
+}
diff --git a/relay/auth/hmac/v2/token.go b/relay/auth/hmac/v2/token.go
new file mode 100644
index 000000000..553ac01b9
--- /dev/null
+++ b/relay/auth/hmac/v2/token.go
@@ -0,0 +1,39 @@
+package v2
+
+import "errors"
+
+type Token struct {
+	AuthAlgo  AuthAlgo
+	Signature []byte
+	Payload   []byte
+}
+
+func (t *Token) Marshal() []byte {
+	size := 1 + len(t.Signature) + len(t.Payload)
+
+	buf := make([]byte, size)
+
+	buf[0] = byte(t.AuthAlgo)
+	copy(buf[1:], t.Signature)
+	copy(buf[1+len(t.Signature):], t.Payload)
+
+	return buf
+}
+
+func UnmarshalToken(data []byte) (*Token, error) {
+	if len(data) == 0 {
+		return nil, errors.New("invalid token data")
+	}
+
+	algo := AuthAlgo(data[0])
+	sigSize := algo.Size()
+	if len(data) < 1+sigSize {
+		return nil, errors.New("invalid token data: insufficient length")
+	}
+
+	return &Token{
+		AuthAlgo:  algo,
+		Signature: data[1 : 1+sigSize],
+		Payload:   data[1+sigSize:],
+	}, nil
+}
diff --git a/relay/auth/hmac/v2/validator.go b/relay/auth/hmac/v2/validator.go
new file mode 100644
index 000000000..7f448dd5f
--- /dev/null
+++ b/relay/auth/hmac/v2/validator.go
@@ -0,0 +1,59 @@
+package v2
+
+import (
+	"crypto/hmac"
+	"errors"
+	"fmt"
+	"strconv"
+	"time"
+)
+
+const minLengthUnixTimestamp = 10
+
+type Validator struct {
+	secret []byte
+}
+
+func NewValidator(secret []byte) *Validator {
+	return &Validator{secret: secret}
+}
+
+func (v *Validator) Validate(data any) error {
+	d, ok := data.([]byte)
+	if !ok {
+		return fmt.Errorf("invalid data type")
+	}
+
+	token, err := UnmarshalToken(d)
+	if err != nil {
+		return fmt.Errorf("unmarshal token: %w", err)
+	}
+
+	if len(token.Payload) < minLengthUnixTimestamp {
+		return errors.New("invalid payload: insufficient length")
+	}
+
+	hashFunc := token.AuthAlgo.New()
+	if hashFunc == nil {
+		return fmt.Errorf("unsupported auth algorithm: %s", token.AuthAlgo)
+	}
+
+	h := hmac.New(hashFunc, v.secret)
+	h.Write(token.Payload)
+	expectedMAC := h.Sum(nil)
+
+	if !hmac.Equal(token.Signature, expectedMAC) {
+		return errors.New("invalid signature")
+	}
+
+	timestamp, err := strconv.ParseInt(string(token.Payload), 10, 64)
+	if err != nil {
+		return fmt.Errorf("invalid payload: %w", err)
+	}
+
+	if time.Now().Unix() > timestamp {
+		return fmt.Errorf("expired token")
+	}
+
+	return nil
+}
diff --git a/relay/auth/hmac/validator.go b/relay/auth/hmac/validator.go
index 6ddd89c19..b0b7542be 100644
--- a/relay/auth/hmac/validator.go
+++ b/relay/auth/hmac/validator.go
@@ -1,8 +1,8 @@
 package hmac
 
 import (
+	"crypto/sha256"
 	"fmt"
-	"hash"
 	"time"
 
 	log "github.com/sirupsen/logrus"
@@ -19,7 +19,7 @@ func NewTimedHMACValidator(secret string, duration time.Duration) *TimedHMACVali
 	}
 }
 
-func (a *TimedHMACValidator) Validate(algo func() hash.Hash, credentials any) error {
+func (a *TimedHMACValidator) Validate(credentials any) error {
 	b, ok := credentials.([]byte)
 	if !ok {
 		return fmt.Errorf("invalid credentials type")
@@ -29,5 +29,5 @@ func (a *TimedHMACValidator) Validate(algo func() hash.Hash, credentials any) er
 		log.Debugf("failed to unmarshal token: %s", err)
 		return err
 	}
-	return a.TimedHMAC.Validate(algo, c)
+	return a.TimedHMAC.Validate(sha256.New, c)
 }
diff --git a/relay/auth/validator.go b/relay/auth/validator.go
index 078811f3d..854efd5bb 100644
--- a/relay/auth/validator.go
+++ b/relay/auth/validator.go
@@ -1,8 +1,35 @@
 package auth
 
-import "hash"
+import (
+	"time"
+
+	auth "github.com/netbirdio/netbird/relay/auth/hmac"
+	authv2 "github.com/netbirdio/netbird/relay/auth/hmac/v2"
+)
 
 // Validator is an interface that defines the Validate method.
 type Validator interface {
-	Validate(func() hash.Hash, any) error
+	Validate(any) error
+	// Deprecated: Use Validate instead.
+	ValidateHelloMsgType(any) error
+}
+
+type TimedHMACValidator struct {
+	authenticatorV2 *authv2.Validator
+	authenticator   *auth.TimedHMACValidator
+}
+
+func NewTimedHMACValidator(secret []byte, duration time.Duration) *TimedHMACValidator {
+	return &TimedHMACValidator{
+		authenticatorV2: authv2.NewValidator(secret),
+		authenticator:   auth.NewTimedHMACValidator(string(secret), duration),
+	}
+}
+
+func (a *TimedHMACValidator) Validate(credentials any) error {
+	return a.authenticatorV2.Validate(credentials)
+}
+
+func (a *TimedHMACValidator) ValidateHelloMsgType(credentials any) error {
+	return a.authenticator.Validate(credentials)
 }
diff --git a/relay/client/client.go b/relay/client/client.go
index 1160d1c9e..6560c81e1 100644
--- a/relay/client/client.go
+++ b/relay/client/client.go
@@ -14,8 +14,6 @@ import (
 	"github.com/netbirdio/netbird/relay/client/dialer/ws"
 	"github.com/netbirdio/netbird/relay/healthcheck"
 	"github.com/netbirdio/netbird/relay/messages"
-	"github.com/netbirdio/netbird/relay/messages/address"
-	auth2 "github.com/netbirdio/netbird/relay/messages/auth"
 )
 
 const (
@@ -240,31 +238,21 @@ func (c *Client) connect() error {
 }
 
 func (c *Client) handShake() error {
-	authMsg := &auth2.Msg{
-		AuthAlgorithm:  auth2.AlgoHMACSHA256,
-		AdditionalData: c.authTokenStore.TokenBinary(),
-	}
-
-	authData, err := authMsg.Marshal()
+	msg, err := messages.MarshalAuthMsg(c.hashedID, c.authTokenStore.TokenBinary())
 	if err != nil {
-		return fmt.Errorf("marshal auth message: %w", err)
-	}
-
-	msg, err := messages.MarshalHelloMsg(c.hashedID, authData)
-	if err != nil {
-		log.Errorf("failed to marshal hello message: %s", err)
+		log.Errorf("failed to marshal auth message: %s", err)
 		return err
 	}
 
 	_, err = c.relayConn.Write(msg)
 	if err != nil {
-		log.Errorf("failed to send hello message: %s", err)
+		log.Errorf("failed to send auth message: %s", err)
 		return err
 	}
-	buf := make([]byte, messages.MaxHandshakeSize)
+	buf := make([]byte, messages.MaxHandshakeRespSize)
 	n, err := c.readWithTimeout(buf)
 	if err != nil {
-		log.Errorf("failed to read hello response: %s", err)
+		log.Errorf("failed to read auth response: %s", err)
 		return err
 	}
 
@@ -279,23 +267,18 @@ func (c *Client) handShake() error {
 		return err
 	}
 
-	if msgType != messages.MsgTypeHelloResponse {
+	if msgType != messages.MsgTypeAuthResponse {
 		log.Errorf("unexpected message type: %s", msgType)
 		return fmt.Errorf("unexpected message type")
 	}
 
-	additionalData, err := messages.UnmarshalHelloResponse(buf[messages.SizeOfProtoHeader:n])
+	addr, err := messages.UnmarshalAuthResponse(buf[messages.SizeOfProtoHeader:n])
 	if err != nil {
 		return err
 	}
 
-	addr, err := address.Unmarshal(additionalData)
-	if err != nil {
-		return fmt.Errorf("unmarshal address: %w", err)
-	}
-
 	c.muInstanceURL.Lock()
-	c.instanceURL = &RelayAddr{addr: addr.URL}
+	c.instanceURL = &RelayAddr{addr: addr}
 	c.muInstanceURL.Unlock()
 	return nil
 }
diff --git a/relay/cmd/root.go b/relay/cmd/root.go
index 784b42c1a..dcc1465d0 100644
--- a/relay/cmd/root.go
+++ b/relay/cmd/root.go
@@ -2,6 +2,7 @@ package cmd
 
 import (
 	"context"
+	"crypto/sha256"
 	"crypto/tls"
 	"errors"
 	"fmt"
@@ -16,7 +17,7 @@ import (
 	"github.com/spf13/cobra"
 
 	"github.com/netbirdio/netbird/encryption"
-	auth "github.com/netbirdio/netbird/relay/auth/hmac"
+	"github.com/netbirdio/netbird/relay/auth"
 	"github.com/netbirdio/netbird/relay/server"
 	"github.com/netbirdio/netbird/signal/metrics"
 	"github.com/netbirdio/netbird/util"
@@ -139,7 +140,9 @@ func execute(cmd *cobra.Command, args []string) error {
 	}
 	srvListenerCfg.TLSConfig = tlsConfig
 
-	authenticator := auth.NewTimedHMACValidator(cobraConfig.AuthSecret, 24*time.Hour)
+	hashedSecret := sha256.Sum256([]byte(cobraConfig.AuthSecret))
+	authenticator := auth.NewTimedHMACValidator(hashedSecret[:], 24*time.Hour)
+
 	srv, err := server.NewServer(metricsServer.Meter, cobraConfig.ExposedAddress, tlsSupport, authenticator)
 	if err != nil {
 		log.Debugf("failed to create relay server: %v", err)
diff --git a/relay/messages/address/address.go b/relay/messages/address/address.go
index 829206294..707e73e55 100644
--- a/relay/messages/address/address.go
+++ b/relay/messages/address/address.go
@@ -1,3 +1,4 @@
+// Deprecated: This package is deprecated and will be removed in a future release.
 package address
 
 import (
@@ -18,13 +19,3 @@ func (addr *Address) Marshal() ([]byte, error) {
 	}
 	return buf.Bytes(), nil
 }
-
-func Unmarshal(data []byte) (*Address, error) {
-	var addr Address
-	buf := bytes.NewBuffer(data)
-	dec := gob.NewDecoder(buf)
-	if err := dec.Decode(&addr); err != nil {
-		return nil, fmt.Errorf("decode Address: %w", err)
-	}
-	return &addr, nil
-}
diff --git a/relay/messages/auth/auth.go b/relay/messages/auth/auth.go
index 8230bccf2..9c2511f2f 100644
--- a/relay/messages/auth/auth.go
+++ b/relay/messages/auth/auth.go
@@ -1,3 +1,4 @@
+// Deprecated: This package is deprecated and will be removed in a future release.
 package auth
 
 import (
@@ -30,15 +31,6 @@ type Msg struct {
 	AdditionalData []byte
 }
 
-func (msg *Msg) Marshal() ([]byte, error) {
-	var buf bytes.Buffer
-	enc := gob.NewEncoder(&buf)
-	if err := enc.Encode(msg); err != nil {
-		return nil, fmt.Errorf("encode Msg: %w", err)
-	}
-	return buf.Bytes(), nil
-}
-
 func UnmarshalMsg(data []byte) (*Msg, error) {
 	var msg *Msg
 
diff --git a/relay/messages/message.go b/relay/messages/message.go
index cfcac3f72..39ca0aa90 100644
--- a/relay/messages/message.go
+++ b/relay/messages/message.go
@@ -7,12 +7,21 @@ import (
 )
 
 const (
-	MsgTypeUnknown       MsgType = 0
-	MsgTypeHello         MsgType = 1
+	MaxHandshakeSize     = 212
+	MaxHandshakeRespSize = 8192
+
+	CurrentProtocolVersion = 1
+
+	MsgTypeUnknown MsgType = 0
+	// Deprecated: Use MsgTypeAuth instead.
+	MsgTypeHello MsgType = 1
+	// Deprecated: Use MsgTypeAuthResponse instead.
 	MsgTypeHelloResponse MsgType = 2
 	MsgTypeTransport     MsgType = 3
 	MsgTypeClose         MsgType = 4
 	MsgTypeHealthCheck   MsgType = 5
+	MsgTypeAuth                  = 6
+	MsgTypeAuthResponse          = 7
 
 	SizeOfVersionByte = 1
 	SizeOfMsgType     = 1
@@ -22,12 +31,12 @@ const (
 	sizeOfMagicByte = 4
 
 	headerSizeTransport = IDSize
+
 	headerSizeHello     = sizeOfMagicByte + IDSize
 	headerSizeHelloResp = 0
 
-	MaxHandshakeSize = 8192
-
-	CurrentProtocolVersion = 1
+	headerSizeAuth     = sizeOfMagicByte + IDSize
+	headerSizeAuthResp = 0
 )
 
 var (
@@ -47,6 +56,10 @@ func (m MsgType) String() string {
 		return "hello"
 	case MsgTypeHelloResponse:
 		return "hello response"
+	case MsgTypeAuth:
+		return "auth"
+	case MsgTypeAuthResponse:
+		return "auth response"
 	case MsgTypeTransport:
 		return "transport"
 	case MsgTypeClose:
@@ -58,10 +71,6 @@ func (m MsgType) String() string {
 	}
 }
 
-type HelloResponse struct {
-	InstanceAddress string
-}
-
 // ValidateVersion checks if the given version is supported by the protocol
 func ValidateVersion(msg []byte) (int, error) {
 	if len(msg) < SizeOfVersionByte {
@@ -84,6 +93,7 @@ func DetermineClientMessageType(msg []byte) (MsgType, error) {
 	switch msgType {
 	case
 		MsgTypeHello,
+		MsgTypeAuth,
 		MsgTypeTransport,
 		MsgTypeClose,
 		MsgTypeHealthCheck:
@@ -103,6 +113,7 @@ func DetermineServerMessageType(msg []byte) (MsgType, error) {
 	switch msgType {
 	case
 		MsgTypeHelloResponse,
+		MsgTypeAuthResponse,
 		MsgTypeTransport,
 		MsgTypeClose,
 		MsgTypeHealthCheck:
@@ -112,6 +123,7 @@ func DetermineServerMessageType(msg []byte) (MsgType, error) {
 	}
 }
 
+// Deprecated: Use MarshalAuthMsg instead.
 // MarshalHelloMsg initial hello message
 // The Hello message is the first message sent by a client after establishing a connection with the Relay server. This
 // message is used to authenticate the client with the server. The authentication is done using an HMAC method.
@@ -135,6 +147,7 @@ func MarshalHelloMsg(peerID []byte, additions []byte) ([]byte, error) {
 	return msg, nil
 }
 
+// Deprecated: Use UnmarshalAuthMsg instead.
 // UnmarshalHelloMsg extracts peerID and the additional data from the hello message. The Additional data is used to
 // authenticate the client with the server.
 func UnmarshalHelloMsg(msg []byte) ([]byte, []byte, error) {
@@ -148,6 +161,7 @@ func UnmarshalHelloMsg(msg []byte) ([]byte, []byte, error) {
 	return msg[sizeOfMagicByte:headerSizeHello], msg[headerSizeHello:], nil
 }
 
+// Deprecated: Use MarshalAuthResponse instead.
 // MarshalHelloResponse creates a response message to the hello message.
 // In case of success connection the server response with a Hello Response message. This message contains the server's
 // instance URL. This URL will be used by choose the common Relay server in case if the peers are in different Relay
@@ -163,6 +177,7 @@ func MarshalHelloResponse(additionalData []byte) ([]byte, error) {
 	return msg, nil
 }
 
+// Deprecated: Use UnmarshalAuthResponse instead.
 // UnmarshalHelloResponse extracts the additional data from the hello response message.
 func UnmarshalHelloResponse(msg []byte) ([]byte, error) {
 	if len(msg) < headerSizeHelloResp {
@@ -171,6 +186,69 @@ func UnmarshalHelloResponse(msg []byte) ([]byte, error) {
 	return msg, nil
 }
 
+// MarshalAuthMsg initial authentication message
+// The Auth message is the first message sent by a client after establishing a connection with the Relay server. This
+// message is used to authenticate the client with the server. The authentication is done using an HMAC method.
+// The protocol does not limit to use HMAC, it can be any other method. If the authentication failed the server will
+// close the network connection without any response.
+func MarshalAuthMsg(peerID []byte, authPayload []byte) ([]byte, error) {
+	if len(peerID) != IDSize {
+		return nil, fmt.Errorf("invalid peerID length: %d", len(peerID))
+	}
+
+	msg := make([]byte, SizeOfProtoHeader+sizeOfMagicByte, SizeOfProtoHeader+headerSizeAuth+len(authPayload))
+
+	msg[0] = byte(CurrentProtocolVersion)
+	msg[1] = byte(MsgTypeAuth)
+
+	copy(msg[SizeOfProtoHeader:SizeOfProtoHeader+sizeOfMagicByte], magicHeader)
+
+	msg = append(msg, peerID...)
+	msg = append(msg, authPayload...)
+
+	return msg, nil
+}
+
+// UnmarshalAuthMsg extracts peerID and the auth payload from the message
+func UnmarshalAuthMsg(msg []byte) ([]byte, []byte, error) {
+	if len(msg) < headerSizeAuth {
+		return nil, nil, ErrInvalidMessageLength
+	}
+	if !bytes.Equal(msg[:sizeOfMagicByte], magicHeader) {
+		return nil, nil, errors.New("invalid magic header")
+	}
+
+	return msg[sizeOfMagicByte:headerSizeAuth], msg[headerSizeAuth:], nil
+}
+
+// MarshalAuthResponse creates a response message to the auth.
+// In case of success connection the server response with a AuthResponse message. This message contains the server's
+// instance URL. This URL will be used by choose the common Relay server in case if the peers are in different Relay
+// servers.
+func MarshalAuthResponse(address string) ([]byte, error) {
+	ab := []byte(address)
+	msg := make([]byte, SizeOfProtoHeader, SizeOfProtoHeader+headerSizeAuthResp+len(ab))
+
+	msg[0] = byte(CurrentProtocolVersion)
+	msg[1] = byte(MsgTypeAuthResponse)
+
+	msg = append(msg, ab...)
+
+	if len(msg) > MaxHandshakeRespSize {
+		return nil, fmt.Errorf("invalid message length: %d", len(msg))
+	}
+
+	return msg, nil
+}
+
+// UnmarshalAuthResponse it is a confirmation message to auth success
+func UnmarshalAuthResponse(msg []byte) (string, error) {
+	if len(msg) < headerSizeAuthResp+1 {
+		return "", ErrInvalidMessageLength
+	}
+	return string(msg), nil
+}
+
 // MarshalCloseMsg creates a close message.
 // The close message is used to close the connection gracefully between the client and the server. The server and the
 // client can send this message. After receiving this message, the server or client will close the connection.
diff --git a/relay/messages/message_test.go b/relay/messages/message_test.go
index a4e7d9fae..6e917da71 100644
--- a/relay/messages/message_test.go
+++ b/relay/messages/message_test.go
@@ -20,6 +20,22 @@ func TestMarshalHelloMsg(t *testing.T) {
 	}
 }
 
+func TestMarshalAuthMsg(t *testing.T) {
+	peerID := []byte("abdFAaBcawquEiCMzAabYosuUaGLtSNhKxz+")
+	bHello, err := MarshalAuthMsg(peerID, []byte{})
+	if err != nil {
+		t.Fatalf("error: %v", err)
+	}
+
+	receivedPeerID, _, err := UnmarshalAuthMsg(bHello[SizeOfProtoHeader:])
+	if err != nil {
+		t.Fatalf("error: %v", err)
+	}
+	if string(receivedPeerID) != string(peerID) {
+		t.Errorf("expected %s, got %s", peerID, receivedPeerID)
+	}
+}
+
 func TestMarshalTransportMsg(t *testing.T) {
 	peerID := []byte("abdFAaBcawquEiCMzAabYosuUaGLtSNhKxz+")
 	payload := []byte("payload")
diff --git a/relay/server/relay.go b/relay/server/relay.go
index 6d88cbbb2..76c01a697 100644
--- a/relay/server/relay.go
+++ b/relay/server/relay.go
@@ -2,7 +2,6 @@ package server
 
 import (
 	"context"
-	"crypto/sha256"
 	"fmt"
 	"net"
 	"net/url"
@@ -14,7 +13,9 @@ import (
 
 	"github.com/netbirdio/netbird/relay/auth"
 	"github.com/netbirdio/netbird/relay/messages"
+	//nolint:staticcheck
 	"github.com/netbirdio/netbird/relay/messages/address"
+	//nolint:staticcheck
 	authmsg "github.com/netbirdio/netbird/relay/messages/auth"
 	"github.com/netbirdio/netbird/relay/metrics"
 )
@@ -168,39 +169,81 @@ func (r *Relay) handshake(conn net.Conn) ([]byte, error) {
 		return nil, fmt.Errorf("determine message type from %s: %w", conn.RemoteAddr(), err)
 	}
 
-	if msgType != messages.MsgTypeHello {
-		return nil, fmt.Errorf("invalid message type from %s", conn.RemoteAddr())
+	var (
+		responseMsg []byte
+		peerID      []byte
+	)
+	switch msgType {
+	//nolint:staticcheck
+	case messages.MsgTypeHello:
+		peerID, responseMsg, err = r.handleHelloMsg(buf[messages.SizeOfProtoHeader:n], conn.RemoteAddr())
+	case messages.MsgTypeAuth:
+		peerID, responseMsg, err = r.handleAuthMsg(buf[messages.SizeOfProtoHeader:n], conn.RemoteAddr())
+	default:
+		return nil, fmt.Errorf("invalid message type %d from %s", msgType, conn.RemoteAddr())
 	}
-
-	peerID, authData, err := messages.UnmarshalHelloMsg(buf[messages.SizeOfProtoHeader:n])
 	if err != nil {
-		return nil, fmt.Errorf("unmarshal hello message: %w", err)
+		return nil, err
 	}
 
-	authMsg, err := authmsg.UnmarshalMsg(authData)
-	if err != nil {
-		return nil, fmt.Errorf("unmarshal auth message: %w", err)
-	}
-
-	if err := r.validator.Validate(sha256.New, authMsg.AdditionalData); err != nil {
-		return nil, fmt.Errorf("validate %s (%s): %w", peerID, conn.RemoteAddr(), err)
-	}
-
-	addr := &address.Address{URL: r.instanceURL}
-	addrData, err := addr.Marshal()
-	if err != nil {
-		return nil, fmt.Errorf("marshal addressc to %s (%s): %w", peerID, conn.RemoteAddr(), err)
-	}
-
-	msg, err := messages.MarshalHelloResponse(addrData)
-	if err != nil {
-		return nil, fmt.Errorf("marshal hello response to %s (%s): %w", peerID, conn.RemoteAddr(), err)
-	}
-
-	_, err = conn.Write(msg)
+	_, err = conn.Write(responseMsg)
 	if err != nil {
 		return nil, fmt.Errorf("write to %s (%s): %w", peerID, conn.RemoteAddr(), err)
 	}
 
 	return peerID, nil
 }
+
+func (r *Relay) handleHelloMsg(buf []byte, remoteAddr net.Addr) ([]byte, []byte, error) {
+	//nolint:staticcheck
+	rawPeerID, authData, err := messages.UnmarshalHelloMsg(buf)
+	if err != nil {
+		return nil, nil, fmt.Errorf("unmarshal hello message: %w", err)
+	}
+
+	peerID := messages.HashIDToString(rawPeerID)
+	log.Warnf("peer %s (%s) is using deprecated initial message type", peerID, remoteAddr)
+
+	authMsg, err := authmsg.UnmarshalMsg(authData)
+	if err != nil {
+		return nil, nil, fmt.Errorf("unmarshal auth message: %w", err)
+	}
+
+	//nolint:staticcheck
+	if err := r.validator.ValidateHelloMsgType(authMsg.AdditionalData); err != nil {
+		return nil, nil, fmt.Errorf("validate %s (%s): %w", peerID, remoteAddr, err)
+	}
+
+	addr := &address.Address{URL: r.instanceURL}
+	addrData, err := addr.Marshal()
+	if err != nil {
+		return nil, nil, fmt.Errorf("marshal addressc to %s (%s): %w", peerID, remoteAddr, err)
+	}
+
+	//nolint:staticcheck
+	responseMsg, err := messages.MarshalHelloResponse(addrData)
+	if err != nil {
+		return nil, nil, fmt.Errorf("marshal hello response to %s (%s): %w", peerID, remoteAddr, err)
+	}
+	return rawPeerID, responseMsg, nil
+}
+
+func (r *Relay) handleAuthMsg(buf []byte, addr net.Addr) ([]byte, []byte, error) {
+	rawPeerID, authPayload, err := messages.UnmarshalAuthMsg(buf)
+	if err != nil {
+		return nil, nil, fmt.Errorf("unmarshal hello message: %w", err)
+	}
+
+	peerID := messages.HashIDToString(rawPeerID)
+
+	if err := r.validator.Validate(authPayload); err != nil {
+		return nil, nil, fmt.Errorf("validate %s (%s): %w", peerID, addr, err)
+	}
+
+	responseMsg, err := messages.MarshalAuthResponse(r.instanceURL)
+	if err != nil {
+		return nil, nil, fmt.Errorf("marshal hello response to %s (%s): %w", peerID, addr, err)
+	}
+
+	return rawPeerID, responseMsg, nil
+}