Manchester City have avoided a transfer ban after winning their case at the Court of Arbitration for Sport against Argentinian club Velez Sarsfield, Sky Sports News understands.
Velez took their case to CAS after Federation Internationale de Football Association ruled in City's favour, but the South American outfit have seen their claim dismissed.
Guardiola is looking to add two or three more players to his squad in a bid to create what Vincent Kompany termed a "dynasty" after Manchester United's defeat by West Bromwich Albion handed City the championship on Sunday.
Velez claimed that the new Premier League champions broke Federation Internationale de Football Association rules when they signed teenager Benjamin Garre in 2016.
Federation Internationale de Football Association sanctioned the transfer and Man City were confident CAS would rule in their favour. The Premier League club have argued that they acted within the rules, but Velez took the complaint to CAS and a verdict is expected within the next seven days.
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Velez appealed to Federation Internationale de Football Association, claiming that transfer rules state that players aged 18 or under can only move between European clubs.
Of some encouragement to City is that Federation Internationale de Football Association ratified the transfer and upheld City's argument that their capture of Garre, who is now playing in their Under 23 side, was not a breach of the regulations because he holds an Italian passport.
"Velez also took Federation Internationale de Football Association to CAS after the world governing body rejected an initial complaint from the South American club in September 2016".
Had they been found guilty of breaking transfer rules, City could have been prohibited from registering any new signings for two transfer windows.