A motor vehicle driveline that can transmit power in a 4.times.4 mode includes two front wheels, a rear drive shaft, a differential mechanism for transmitting power to two rear axle shafts connected driveably through the differential to the rear driveshaft, and a clutch for engaging and disengaging a drive connection in the differential mechanism. A method for controlling operation of the clutch includes the steps of operating the driveline in 4.times.4 mode, determining a current accelerator pedal position, determining whether a current accelerator pedal position is less than a reference position for a predetermined period, determining a current speed of each front wheel of the vehicle, determining whether a current speed difference between the front wheels of the vehicle is less than a reference wheel slip for a first predetermined period, determining during a second predetermined period whether a current time rate of speed change of the rear drive shaft is less than a reference rear wheel slip. The clutch is prevented from being engaged if either the speed difference exceeds the reference speed difference, or the time rate of speed change of the rear drive shaft is greater than a reference rear wheel slip. Otherwise, the clutch is engaged.