A multi-layered gasket for a combustion engine having a central gasket layer and a plurality of active and spacer gasket layers that are removably secured together is disclosed. The active layers are arranged in face-to-face engagement with the spacer layers in an alternating manner with the central layer being positioned in the center of the gasket. The spacer layers may be selectively removed or added to vary the compression ratio of the engine. Alternatively, spacer layers may be selectively substituted With additional spacer layers having differing thicknesses to selectively vary the compression ratio of the engine. Each of the gasket layers are provided with a visual indicator to distinguish the respective layers from one another. Retaining mechanisms for removably securing the gasket layers together are also disclosed.