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This paper introduces a new multi-plate clutch system that allows freewheeler shifts without the need for conventional roller or sprag type clutches. When set in the one-way mode, the Multi-Mode Clutch holds torque in one direction, but releases in a controlled, self-synchronized manner when the direction of torque reverses. In the normal mode, the clutch holds torque in both directions, providing engine braking in coast. A bi-directional version of this clutch can be set to function as a one-way clutch in either direction. This version eliminates two roller/sprag clutches and a plate clutch. In a third version, the clutch utilizes a thrust force from an adjacent gear unit to control its capacity. This clutch can be packaged in less space than conventional devices with equivalent function, and offers opportunities for significant cost savings.