A fuel cell diffusion layer providing a preferential path by which liquid reactants or byproducts may be supplied to or removed from a direct oxidation fuel cell is described. The modified diffusion layer will be typically on the cathode side of the fuel cell and its use is to eliminate or minimize flooding of the cathode diffusion layer area, which is a performance limiting condition in direct methanol fuel cells. In accordance with one embodiment of the invention, the diffusion layer includes a substrate that is coated with a microporous layer. A pattern may be embossed into the diffusion layer, to create preferential flow paths by which water will travel and thereby be removed from the cathode catalyst area. This avoids cathode flooding and avoids build up of potentially destructive pressure by possible cathodic water accumulation. This also provides a means for collecting cathode water for redirection In accordance with another aspect of the invention, the preferential path is established by applying a thicker microporous layer to the carbon cloth or carbon paper and drying it in such a fashion so that when it dries, the surface of the microporous layer cracks to provide the pathways.