Coventry City have been given clearance by the Football League to sign new players during the January transfer window.
The stricken League One club had been operating under strict transfer conditions since going into administration in March 2013.
However, they are now able to bring a new player into the club without having to let another leave first.
"We have prudently cut the cost of our first team squad over the last few months, while maintaining our competitiveness in League One," development director Steve Waggott told Coventry's official website.
"A huge thanks must go to the owner for injecting the required funding to allow us to move into this stronger position."
Coventry are currently in 11th place in the League One table.