The present invention relates to a system and method for implementing auto-configurable default polarity. More specifically, the present invention relates to a transceiver module comprising, for example, a single chip multi-sublayer PHY, where the single chip multi-sublayer PHY is adapted to implement auto-configurable default polarity. In one embodiment, the transceiver module comprises at least one program module adapted to be programmed with at least a default polarity setting. The single-chip multi-sublayer PHY comprises at least one selection register communicating with at least the program module, where the selection register is adapted to store at least the default polarity setting. The single chip multi-sublayer PHY further comprises at least one multiplexer communicating with at least the selection register and adapted to select one polarity from at least two possible polarities based at least in part on the default polarity setting.