And it means that the French champions can spend more on new players after proving they will be debt-free by the end of next season, according to French newspaper L'Equipe.

PSG were heavily sanctioned by European football's governing body in May 2014 after breaching FFP rules.

But UEFA's new ruling means that the Parisians can increase the size of their Champions League squad from 21 to 25 players for next season (2015/16), L'Equipe reported.

The online edition of the newspaper added that UEFA's Financial Supervisory Instance of Clubs (ICFC) department has lifted the 60-million-euro limit that was imposed on the Qatari-owned Paris giants.

PSG -- who've won back-to-back Ligue 1 titles -- were purchased by Qatar Investment Authority in 2011.

They'll now be able to recruit players unrestricted instead of being hampered by a spending ceiling. 

The Parc des Princes outfit have been heavily linked with a move for Juventus' star midfielder, Frenchman Paul Pogba, who's mooted to have a transfer fee of around 100 million euros.

Manchester United's Argentine winger Angel di Maria is also a target -- a player that PSG missed out on last season due to the restrictions.

PSG, who won all four domestic trophies in France last season, had signed an agreement with UEFA to promise that they would not go above a deficit of 30 million euros at the end of last season.

And one year in advance, the club have signed a deal stipulating that they will be debt free come the end of the 2015/16 season, which resulted in the sanctions being lifted early against the capital club.