Fluid systems having modulating pressure relief valves are normally needed in systems having clutches that require smooth engagement. It is also desired in many systems to maintain a difference in pressure levels between the fluid in different clutches, such as, speed and directional clutches during initial engagement in order to ensure that only one of the clutches absorbs the initial load. In order to reduce power losses and improve system efficiency, it is desirable to reduce the pressure level of the higher clutch once the clutches are fully engaged. The present modulating pressure relief valve assembly provides a valve device that is effective to limit the maximum pressure in the system and change the pressure difference between the clutches upon full engagement thereof. The valve device is located in a single bore thus reducing total valve size and manufacturing costs.