Reports from BBC Radio Leeds state owner Massimo Cellino has confirmed that the Football League has now lifted its sanction on Leeds, meaning they are free to operate as normal in the transfer market once again.
The club were hit with the embargo earlier this season and it affected their activities in the winter transfer window.
The Whites were still able to make additions, notably on loan, but had to balance the books and several players were offloaded.
Cellino himself recently returned to take charge at Elland Road following the expiry of his Football League ban for breaching the organisation's owners' and directors' test.
Now the Italian can throw himself into Leeds' transfer business this summer as he seeks to reshape the squad for the forthcoming season.
Cellino manages transfers at Elland Road, with the club's head coach Neil Redfearn only able to make player recommendations.