The Sky Blues were placed under a temporary embargo in March after failing to file their accounts on time and have subsequently missed out on several transfer targets.
Chief executive Tim Fisher told the club's official website: "This is positive news for the club on many levels. In short, the lifting of the embargo means that the club can start to move forward with plans we have for the new season.
"We now move on. Recently, whomever I have spoken to or met, has asked the same, simple question - when is the embargo going to be lifted?
"Everyone has recognised that to move forward, we need to start trading again. Lifting the embargo will provide a big boost for everyone at the club.
"Andy Thorn and Steve Waggott can now push on with implementing the squad plans they have worked so hard to put together in readiness for this decision."
Coventry were relegated to League One at the end of last season.
