Sheffield Wednesday will not be placed under a transfer embargo until their dispute with the English Football League is resolved, the club have claimed.
The Owls have issued a claim against the EFL for allegedly "acting unlawfully" by bringing a misconduct charge against the Sky Bet Championship club.
The dispute centres on Wednesday's sale of their Hillsborough stadium, which led to charges for trying to avoid breaking spending rules and the club face sanctions, including a possible points deduction.
"The club is proceeding with its arbitration claim against the EFL that the charges issued by the EFL are unlawful and the process of appointing the arbitrators is currently under way," read a statement on the club's official website.
"No step will be taken in the disciplinary case, if at all, until the arbitration is resolved. The club can confirm that it is not under embargo. No further comment will be made at this stage."
Wednesday have denied all allegations put forward by the EFL after it opened an investigation into the club's profitability and sustainability submission for 2017-18.
The Owls have been reported to have registered a £38million profit from the sale of the stadium to a company owned by their chairman, Dejphon Chansiri, in the wrong year in order to avoid breaching financial fair play rules.
The EFL had said previously the charges would be considered by an independent disciplinary commission with sanctions possibly including a severe points deduction.
Earlier this month, the EFL said it had sufficient evidence to support the misconduct charge and the governing body responded to Wednesday's latest statement by saying the club have no grounds to base their claim.
"The EFL considers the claim brought by the club to be entirely without merit and is seeking an early determination to enable the disciplinary proceedings to continue," read an EFL statement.
"As we have indicated previously it would therefore be inappropriate to make any further comment on this matter or related matters other than to reiterate, once again, that the EFL's robust and comprehensive investigation fully justified the issuing of multiple charges of misconduct."
