The bankruptcy order made against former Blackpool chairman Karl Oyston has been annulled, according to a statement released by the club.
Oyston relinquished his role as chairman and director at Bloomfield Road on August 18th, a day before it emerged he was involved in a bankruptcy hearing.
He was later declared bankrupt and an insolvency report published in September confirmed this had been the case since August 18th.
Premier League rules dictate that no one who has been declared bankrupt can serve as a chairman or director.
Oyston will continue to hold his current post as acting chief executive until a replacement is found.
A statement read: "Blackpool Football Club can confirm that, with effect from 4pm on Tuesday 12 October 2010, the bankruptcy order dated 18 August 2010 made against former chairman of the club, Karl Oyston, has been annulled.
"The annulment order reverses the effect of the bankruptcy order as if it had never been made.
"The club will be making no further comment at this stage."
The Premier League, who had asked the club for clarification of Oyston's role as acting chief executive, confirmed they are aware of the latest development.
A statement read: "The Premier League has received notification of Karl Oyston's annulment. The Premier League Board will now consider the matter at its earliest convenience."