Birmingham City have confirmed that the club have had their transfer embargo removed by the Football League.

The Blues were placed under the embargo in April after it was revealed that they had failed to file their accounts for 2010 in time.

Despite now being free to sign new players, acting chairman Peter Pannu has warned supporters that the club still has to be cautious where money is concerned.

"We are pleased that the hard work of those at the club and the Football League has paid off and that the financial prudence put in place since Carson Yeung's arrest has been recognised," he told the club's official website.

"Despite the lifting of the embargo, we still need to ensure that this financial prudence remains in place going forward."

The news means that new boss Lee Clark is now free to conduct some business in the transfer market.