Real Madrid have had their appeal against their transfer ban partially overturned by the Court of Arbitration for Sport, freeing them to sign players next summer.
The Spanish giants had originally been hit with a transfer ban by FIFA, which would see them unable to purchase players in either transfer window in 2017.
A statement released by the European champions declared: "The Court of Arbitration for Sports (CAS) today announced to Real Madrid CF the award for partially estimating the appeal made by the club against the resolution of FIFA that imposed a penalty of prohibition of registration of players during two periods of signings, reducing it to one, the window corresponding to January 2017.
"This award highlights the unfairness of the penalty imposed by FIFA in its day, although the club regrets that the CAS has not had enough courage to repeal it entirely."
Los Blancos fine of £275,000 has also been reduced, to £189,000.
Both Real and city rivals Atletico were banned from signing players after breaching rules over the transfer of foreign players under the age of 18.
Initial appeals from both clubs were rejected by FIFA, leaving Los Blancos to subsequently appeal to the CAS.
The CAS had never previously overturned a transfer ban from FIFA on the signing of under 18 players, but have seen fit to halve the original sanction imposed on the winners' of the World Club Cup - meaning Madrid can begin registering new players from July 1, when the summer window reopens.
While Madrid will no doubt be delighted by the ban being overturned, there is no question that the issue has proven a costly affair.
A number of the clubs star names - including Gareth Bale, Toni Kroos and Cristiano Ronaldo - have all used the issue as a tool to leverage better contracts for themselves during recent negotiations, with Madrid needing to placate their first-team squad members.
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The news is a boost however to James Rodriguez's hopes of leaving the Santiago Bernabeu in January.
The Colombian has grown frustrated with a bit-part role in the Spanish capital, and Madrid's ability to sign a replacement in the summer increases the likelihood of him departing in the new year.
"I can't guarantee that I'll stay at Real Madrid after the winter window," he told reporters at the weekend. "I have offers and seven days to think."