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Nantes today announced their transfer ban has been suspended by the Court of Arbitration for Sport pending the outcome of the club's appeal against the FIFA-imposed sanction.
Last month the eight-time French champions were barred from signing new players in the next two transfer windows, after FIFA determined they had broken rules when bringing in Guinea striker Ismael Bangoura from Al Nasr Sports Club of Dubai in January 2012.
Nantes challenged the verdict from FIFA's dispute resolution chamber which also made Bangoura and Nantes jointly liable to pay Al Nasr compensation of 4.5million euros (£3.9million) over breach of contract.
Today Nantes said in a statement that Court of Arbitration for Sport (CAS) officials had told Nantes lawyers that on the basis of the appeal taking place they were imposing a suspension on FIFA's verdict, until the process is concluded.
Nantes said: "This decision signifies that the effects of FIFA's decision are suspended until the judgment. In other words, while and for as long as CAS hasn't given a decision on the case, Nantes can freely recruit new players.
"Nantes rejoices at this first favourable step in the procedure and will continue to strongly defend its position in front of CAS."
Nantes were relegated from Ligue 1 in 2009 but are closing in on a return to the top division as they presently stand second in Ligue 2.