Manchester City have been cleared of breaching rules over the signing of Argentine teenager Benjamin Garre by the Court of Arbitration for Sport (CAS).
The Premier League champions faced a potential transfer ban if CAS found them guilty of flouting transfer rules over the signing of Garre from Velez Sarsfield in 2016.
City signed Garre at the age of 16 but Velez claimed the move breached FIFA's rules over the signing of minors from outside the European Union.
However, a statement issued by CAS on Tuesday said that the appeal raised by Velez was dismissed and that City were cleared of wrongdoing.
Velez appealed to CAS in December 2016 after FIFA ruled in City's favour following a complaint about their move for Garre, the grandson of Oscar Garre -- a member of Argentina's 1986 World Cup winning squad.
The Argentine club claimed City broke FIFA regulations, which only allow players under 18 to move between clubs in European countries. City argued that Garre held an Italian passport and was entitled to move after his 16th birthday.
Barcelona, Real Madrid and Atletico Madrid have been subjected to transfer embargoes in recent years after being found guilty of breaching rules regarding the signing of international players younger than 18.