diff --git a/src/parameterizations/lateral/MOM_dynamic_closures.F90 b/src/parameterizations/lateral/MOM_dynamic_closures.F90
new file mode 100644
index 0000000000..cf3bbdb21c
--- /dev/null
+++ b/src/parameterizations/lateral/MOM_dynamic_closures.F90
@@ -0,0 +1,107 @@
+!> Calculates dynamic models similar to Germano 1991 et. al,
+!! following work of Perezhogin & Glazunov 2023
+!! Implemented by Perezhogin P.A. Contact: pperezhogin@gmail.com
+module MOM_dynamic_closures
+
+! This file is part of MOM6. See LICENSE.md for the license.
+use MOM_grid,          only : ocean_grid_type
+use MOM_verticalGrid,  only : verticalGrid_type
+use MOM_diag_mediator, only : diag_ctrl, time_type
+use MOM_file_parser,   only : get_param, log_version, param_file_type
+use MOM_unit_scaling,  only : unit_scale_type
+use MOM_diag_mediator, only : post_data, register_diag_field
+use MOM_domains,       only : create_group_pass, do_group_pass, group_pass_type, &
+                              start_group_pass, complete_group_pass
+use MOM_domains,       only : To_North, To_East
+use MOM_domains,       only : pass_var, CORNER
+use MOM_cpu_clock,     only : cpu_clock_id, cpu_clock_begin, cpu_clock_end
+use MOM_cpu_clock,     only : CLOCK_MODULE, CLOCK_ROUTINE
+
+implicit none ; private
+
+#include <MOM_memory.h>
+
+public PG23_germano_identity, PG23_init, PG23_end
+
+!> Control structure for Perezhogin & Glazunov 2023
+type, public :: PG23_CS ; private
+  ! Parameters
+  real :: test_width      !< Width of the test filter (hat) w.r.t. grid spacing
+  real :: filters_ratio   !< The ratio of combined (hat(bar)) to base (bar) filters
+  
+  type(diag_ctrl), pointer :: diag => NULL() !< A type that regulates diagnostics output
+  !>@{ Diagnostic handles
+  !integer :: id_smt = -1
+  !>@}
+
+  !>@{ CPU time clock IDs
+  integer :: id_clock_module
+  !>@}
+end type PG23_CS
+
+contains
+
+!> Read parameters, allocate and precompute arrays,
+!! register diagnosicts
+subroutine PG23_init(Time, G, GV, US, param_file, diag, CS, use_PG23)
+  type(time_type),         intent(in)    :: Time       !< The current model time.
+  type(ocean_grid_type),   intent(in)    :: G          !< The ocean's grid structure.
+  type(verticalGrid_type), intent(in)    :: GV         !< The ocean's vertical grid structure
+  type(unit_scale_type),   intent(in)    :: US         !< A dimensional unit scaling type
+  type(param_file_type),   intent(in)    :: param_file !< Parameter file parser structure.
+  type(diag_ctrl), target, intent(inout) :: diag       !< Diagnostics structure.
+  type(PG23_CS),           intent(inout) :: CS         !< PG23 control structure.
+  logical,                 intent(out)   :: use_PG23   !< If true, turns on ZB scheme.
+
+  ! This include declares and sets the variable "version".
+#include "version_variable.h"
+  character(len=40)  :: mdl = "MOM_dynamic_closures" ! This module's name.
+
+  call log_version(param_file, mdl, version, "")
+
+  call get_param(param_file, mdl, "USE_PG23", use_PG23, &
+                 "If true, turns on Perezhogin & Glazunov 2023 dynamic closure of " //&
+                 "subgrid momentum parameterization of mesoscale eddies.", default=.false.)
+  if (.not. use_PG23) return
+
+  call get_param(param_file, mdl, "PG_TEST_WIDTH", CS%test_width, &
+                 "Width of the test filter (hat) w.r.t. grid spacing", units="nondim", default=SQRT(6.0))
+
+  call get_param(param_file, mdl, "PG_FILTERS_RATIO", CS%filters_ratio, &
+                 "The ratio of combined (hat(bar)) to base (bar) filters", units="nondim", default=SQRT(2.0))
+
+  ! Register fields for output from this module.
+  !CS%diag => diag
+
+  ! Clock IDs
+  CS%id_clock_module = cpu_clock_id('(Ocean Perezhogin-Glazunov-2023)', grain=CLOCK_MODULE)
+
+end subroutine PG23_init
+
+!> Deallocate any variables allocated in PG23_init
+subroutine PG23_end(CS)
+  type(PG23_CS), intent(inout) :: CS  !< PG23 control structure.
+
+end subroutine PG23_end
+
+!> This function estimates free parameters of PG23 closure 
+!! using germano identity
+subroutine PG23_germano_identity(u, v, h, G, GV, CS)
+type(ocean_grid_type),         intent(in)    :: G  !< The ocean's grid structure.
+type(verticalGrid_type),       intent(in)    :: GV !< The ocean's vertical grid structure.
+type(PG23_CS),                 intent(inout) :: CS  !< PG23 control structure.
+
+real, dimension(SZIB_(G),SZJ_(G),SZK_(GV)), &
+      intent(in)    :: u  !< The zonal velocity [L T-1 ~> m s-1].
+real, dimension(SZI_(G),SZJB_(G),SZK_(GV)), &
+      intent(in)    :: v  !< The meridional velocity [L T-1 ~> m s-1].
+real, dimension(SZI_(G),SZJ_(G),SZK_(GV)),  &
+      intent(in)    :: h  !< Layer thicknesses [H ~> m or kg m-2].
+
+call cpu_clock_begin(CS%id_clock_module)
+
+call cpu_clock_end(CS%id_clock_module)
+
+end subroutine PG23_germano_identity
+
+end module MOM_dynamic_closures
\ No newline at end of file
diff --git a/src/parameterizations/lateral/MOM_hor_visc.F90 b/src/parameterizations/lateral/MOM_hor_visc.F90
index e3249afb73..dcb745ba7d 100644
--- a/src/parameterizations/lateral/MOM_hor_visc.F90
+++ b/src/parameterizations/lateral/MOM_hor_visc.F90
@@ -114,6 +114,7 @@ module MOM_hor_visc
 
   type(ZB2020_CS) :: ZB2020  !< Zanna-Bolton 2020 control structure.
   logical :: use_ZB2020      !< If true, use Zanna-Bolton 2020 parameterization.
+  logical :: use_PG23        !< If true, use Perezhogin & Glazunov 2023 parameterization
 
   real ALLOCABLE_, dimension(NIMEM_,NJMEM_) :: Kh_bg_xx
                       !< The background Laplacian viscosity at h points [L2 T-1 ~> m2 s-1].