The transfer ban FIFA imposed on Real Madrid had been reduced to one transfer window following an appeal to the Court of Arbitration for Sport (CAS).
The Spanish giants, alongside city rivals Atletico Madrid, had both been restricted from signing players for two transfer windows by the football governing body FIFA.
While Real would remain banned from registering new players this January despite the new ruling, they will be able to make signings next summer.
The club also had their fine reduced from 360,000 Swiss francs to Sfr 240,000.
FIFA made the ruling following investigations into players aged under 18 who played in competitions for Atletico between 2007 and 2014, and Real from 2005-2014. Both Real and fellow Spanish side Atletico Madrid were found to have been breaching rules over the transfer of foreign players under the age of 18.
In a statement on their official website, Real said: “The decision highlights the injustice of the original ban imposed by FIFA, although the club regrets that the CAS lacked the courage to revoke the ruling entirely.”
Meanwhile, there has been yet to be development regarding Atletico’s own appeal against their ban and fine.
FIFA initially ruled on the case in January, but the appeals meant both Real and Atletico could sign players last summer.