A wide area monitoring system (WAMS) with reliable telecommunication infrastructure can be expanded and enhanced with additional protection and control functionalities using synchronized phasor data measurements. With that aim, we have developed a multifunctional line protection (MFLP) model with both system and back-up protection functions. Theoretical premises based on transmission and relay protection system knowledge, together with the experience gathered from the operation of existing wide area systems, were used to develop the proposed model. Four main groups of simulation scenarios were defined in order to test the newly implemented functions. The results of the simulation process confirm the assumptions underlying the design of our MFLP module. Simulation results are then used for definition of the protection criteria required for implementation of the wide area protection algorithm in a control center. Conclusions drawn from the protection responses of the proposed algorithm that strengthen the algorithm design process are elaborated in the paper. The main contribution of the paper is the design and development of a centralized MFLP algorithm based on synchronized phasor data that is able to issue a trip command to a circuit breaker before an out-of-step condition occurs.