Chelsea have had their transfer ban lifted by the Court of Arbitration for Sport after reaching an agreement with Lens over the signing of Gael Kakuta.
A statement on the CAS website said that the two clubs and the player had accepted the player’s contract with the French side was not valid.
This meant that Kakuta could not have terminated it prematurely, so Chelsea were not guilty of inducing him to breach it.
Chelsea chairman Bruce Buck, said in a statement on the club’s official website: “We are pleased to have come to an amicable resolution of the matter and that it has been ratified by CAS and recognised by FIFA.
“It was always our intention to work together with Lens to reach this end, and both clubs have strengthened their relationship as a result of resolving this case to everyone’s satisfaction.
“In an act of good faith and with a view to the possibility of future collaboration with Lens, and without recognising any liability, Chelsea has agreed to pay compensation costs for the training given to the player while at Lens, as mandated by FIFA in its original ruling.”
The CAS said all parties agreed the proceedings would remain confidential.
The full statement read: “The Court of Arbitration for Sport (CAS) has issued an award today ratifying the agreement reached by Chelsea FC, Racing Club de Lens and the French football player Gaël Kakuta, putting an end to this arbitration procedure which also involved FIFA.
“The CAS has noted that, in the agreement, the two clubs and the player have recognised that the contract between the player and RC Lens was not valid. Accordingly, the player could not have terminated it prematurely and without just cause and FC Chelsea cannot therefore beliable for inducing a breach of contract.
“As a consequence, in light of these new circumstances,the sanctions imposed upon Chelsea FC and the player by the FIFA Dispute Resolution Chamber had to be lifted.”
The decision overturns Fifa’s original two-year ban imposed in September 2009. The club was also fined €780,000 after Fifa’s dispute resolution chamber ruled that Kakuta breached his contract with Lens and that Chelsea had encouraged him to do so.
Chelsea immediately appealed that decision, claiming: “The sanctions are without precedent…and totally disproportionate to the alleged offence and the financial penalty imposed.”