Blackwell completed talks with Manchester United defender Danny Pugh this morning and the 21-year-old full-back became his first signing as Leeds manager.
The Whites boss is looking to add to the squad and he said: "With the Smithy signing going through and Paul Robinson joining Spurs, their wages have alleviated some of the problems.
"I'm led to understand that I can go and speak to people and at least tentatively get some players in position. Yesterday morning I was straight on the phone to try and get some of the signings we need for next season. It's no secret that there's only really eight or nine lads left and some of those are under the age of 20 so we've got to get some experience in.
"I'm looking at people who can handle playing for Leeds United, and by that I mean the passion from the fans won't overawe them.
"I'm looking for players who have done it in the first division and the Premier League and are coming down for whatever reason."
Blackwell has a list of potential targets, but is keeping them guarded, as he knows he is facing a busy transfer market this summer.