UEFA has removed the restrictions on the transfer spending and Champions League squad sizes of Manchester City and Paris Saint-Germain after the two clubs met their Financial Fair Play (FFP) targets.
Both City and PSG competed in last season's Champions League with just 21 players instead of the usual 25 and also had their spending capped at £49million for breaches of FFP regulations.
In addition, the clubs agreed that their wage bill for the 2014-15 Champions League squad would not exceed that of the 2013-14 campaign, while fines of £16.3m a year were levied.
However, UEFA relaxed its regulations on Tuesday and the organisation's Club Financial Control Body has now decided that the remaining two years' fines for City and PSG will not be imposed.
A UEFA statement read: "The UEFA CFCB has lifted a number of restrictions on transfer activity, employee expenses and number of players in UEFA club competitions imposed on Manchester City FC and Paris Saint-Germain FC after the club[s] reached certain targets towards break-even compliance as part of the ongoing monitoring of their settlement agreement.
"The lifting of restrictions is subject to ongoing additional controls and audits.
"The club[s] remains under strict monitoring and has still to meet break-even targets and is therefore subject to some limitations in 2016."
Hailing the decision, PSG president Nasser Al-Khelaifi told the club's official website: "After spending so much time on this issue, we are pleased with this fair and constructive decision that will allow the club to resume its development.
"We are now in a capacity to move on the transfer market that started last June 9. It is good for European football.
"We are now able to be more active on the transfer market to make our team even more competitive by recruiting the right talents that our team needs.
"However, we are mindful that the settlement signed last year with UEFA is still applicable. Our club has, among other objectives, to reach a break even result in 2015-2016.
"So we will spend our money on the right players as we always did it and this will help the PSG to grow. We don’t have an unlimited budget."
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