Manchester City have been informed that they will not be hit with a transfer ban by the Court of Arbitration for Sport, Goal understands.
Argentine club Velez Sarsfield took both City and FIFA to CAS last summer after the world governing body had ruled that the Premier League side's signing of Benjamin Garre, then 16, was legal.
City could have been hit with a two-window transfer ban if found guilty but after months of waiting the club were informed on Tuesday morning that they are in the clear. Official confirmation from CAS is expected to arrive shortly, and Velez will have the right to appeal.