A system and method are provided for negotiating a link data rate in a communication system using a plurality of data rates. In a system including a first device network-connected to a second device, auto-negotiation (AN) messages are mutually transmitted. The AN messages indicate rate information such as preferred data rate capabilities, if the device has a dual-rate capability, or a single data rate capabilities. If the AN messages are mutually transmitted, a negotiated link data rate is established. However, if one of the devices cannot send AN messages, the other device times-out, and a link data rate is established at the data rate transmitted by the device that is not AN-capable.