The Court of Arbitration for Sport have lifted the transfer embargo imposed on Chelsea by Fifa following their signing of Gael Kakuta.

The world football's ruling body had punished the Premier League club for allegedly inducing the France youth international to breach his contract with Lens in 2007, and would have meant that Chelsea were not able to add to their squad until January 2011.

However, Lens accepted that Kakuta's contract with them was not valid so he could not have terminated it prematurely and therefore Chelsea could not be liable for inducing it to be breached.

The CAS said all parties agreed the proceedings would remain confidential.

Bruce Buck, the Chelsea chairman, said: "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."