UEFA has lifted the Financial Fair Play restrictions that it had imposed on Manchester City.
The restrictions have been lifted after meeting this season's FFP target.
UEFA said in a statement: "The UEFA CFCB (club financial control body) has lifted a number of restrictions on Manchester City after the club reached certain targets towards break-even compliance as part of the ongoing monitoring of their settlement agreement.
"The club remains under strict monitoring and has still to meet break-even targets and is therefore subject to some limitations in 2016."
City had their Champions League squad capped at 21 players last year and their spending on new signings last summer restricted to £49m as punishment.
Similar restrictions have been lifted from Paris Saint-Germain.
