The NRL has confirmed Parramatta Eels are now compliant with the salary cap for the remainder of the 2016 season, based on information currently available.
A preliminary decision from the league last Tuesday saw the Eels stripped of 12 points and heavily fined for breaches of the salary cap.
Parramatta needed to come back under the cap to have the chance of being able to compete for points for the remainder of the 2016 season.
This week's transfer of Nathan Peats to Gold Coast Titans, in addition to Ryan Morgan's recent switch to Melbourne Storm and Anthony Watmough's injury-enforced retirement, has had the desired effect.
An NRL statement on Thursday read: "Salary cap auditor Jamie L'Oste Brown is satisfied that the Eels are now within the cap, based on the information available.
"The club may now submit, as part of its response to the breach notice, that it should be allowed to keep any points it wins in Friday night's game against South Sydney [Rabbitohs] and for the balance of the season.
"The 12 points accumulated while the club is alleged to have been in breach of the 2016 cap will remain on the competition ladder until a final determination on the breach notice is made. Head of Integrity Nick Weeks said the club had required additional time to respond to the breach notice so a final determination is now likely in mid-June."
Eels director Geoff Gerard said: "Ultimately, we all want to see this football team playing for points, and the members and fans deserve to see their club compete for the rest of the NRL season. Our first priority has been making sure that is possible from Friday night onwards."
Head coach Brad Arthur hailed the club's supporters, adding: "Over the past two weeks, our members and fans have been so supportive of our playing group. The fans have had just as many excuses as the playing group to walk away from this team and this club, and they haven't. We probably need them more than ever right now.
"The players know they have a job to do this week, and that's to compete and play footy for their fans."