The Sky Blues will no longer have to work within the 'one in, one out' policy they have been adhering to under the terms of a transfer embargo.
However, they will still have to meet ongoing conditions and demonstrate to the League that they have the finances in place to bring new signings into the club.
Coventry development director Steve Waggott said: "Myself, Steven Pressley (manager) and Neil MacFarlane (assistant) are delighted to be able to resume a more normal service with regard to the future transfer of players.
"We have prudently cut the cost of our first-team squad over the last few months, while maintaining our competitiveness in League One.
"Like all clubs, we still have to fulfil the Salary Cost Management criteria and operate under The Football League's rules and regulations, but to be able to plan in a more normal operational manner is great news, with just the League's usual conditions to meet because of the recent exit from administration.
"A huge thanks must go to the owner for injecting the required funding to allow us to move into this stronger position."
The Sky Blues have been linked with permanent moves for former loanees Chris Dagnall and Dan Seaborne during the January transfer window.
City were also hit by the news on Monday that leading scorer Leon Clarke has handed in a formal transfer request.