In order to co-ordinate multiple resource providers in grid environment to meet a common objective, support for negotiation is needed to establish a contract between the users and the resource providers that clearly states the QoS required, restrictions on resource utilization and penalties during violation of the objective. In this paper, we propose an architecture called GSMA (Grid SLA Management Architecture) that supports entire operations in SLA lifecycle such as negotiation, creation, monitoring, violation, enforcement and destroy. We propose a deviation based resource ordering algorithm (DRS) and successfully automates the SLA negotiation process with backing up of resource support. The negotiation process is implemented based on WS-Agreement specification. Simulation results against gridway meta scheduler shows improved performance in terms of average SLA creation time, success rate and throughput. © 2008 IEEE.