Chester have been cleared to bring in new players by the Football League.
The Professional Footballers' Association indicated earlier this month that Chester had been placed under a transfer embargo after failing to pay the majority of their players for the past two months.
However, Chester have now been informed that the Football League are happy with how they have acted in recent dealings.
"We had a very frank and open discussion, and the League's officials were receptive of our stance," City owner Stephen Vaughan told the club's official website.
"We have been told that we are not embargoed as was stated by the PFA, and as such we are free to bring in players within the current wage capping rules."
Chester have already been looking to strengthen but they have missed out on midfielder Eddie Johnson.
Johnson was released by Bradford at the end of last season and Chester boss Simon Davies had been hoping to sign him.
However, Davies told the Chester Chronicle: "Eddie's decided to sign a shorter-term deal for a club in a higher league, which is his prerogative."