Cardiff City chief Gethin Jenkins has warned the Championship club could suffer a third transfer embargo now their current sanction is lifted.

The Football League imposed the embargo for non-payment of PAYE to HM Revenue and Customs and other "football debts" which Cardiff claim to have now paid.

"We've met the conditions that put us in the embargo in the first place," chief executive Jenkins told BBC Sport.

"But we can't rule out another embargo, that is certainly a possibility."

Cardiff claim their transfer embargo has been lifted as the Football League is satisfied that their outstanding debts are paid.

I can't rule out another embargo, there is certainly a possibility we can go back in and out of it Cardiff City chief executive Gethin Jenkins

The Championship club were under their first transfer embargo between December of 2009 and June of this year as Cardiff faced five winding-up orders at the High Court over an unpaid £1.9m debt to the taxman.

But HMRC dropped the case in June when Cardiff paid up.

Now the Bluebirds, who have estimated debts between £15m and £30m, face a fresh winding-up order back at the High Court in London on 11 August over this new £1.3m PAYE bill.

The Welsh club insist they have paid their outstanding PAYE debt but a High Court judge must formally dismiss Her Majesty's Revenue and Customs case for the legal action to be dropped.

Last season's Championship play-off finalists could not register summer signings goalkeeper Tom Heaton and loan duo Jason Koumas and Danny Drinkwater with the Football League to play until the embargo was lifted.

Cardiff now hope to register their three new boys in time for their Championship opener with Sheffield United at the Cardiff City Stadium on Sunday.

"We are confident we have met the Football League obligations and working through the paperwork with league to come out of the embargo," Jenkins told BBC TWO Wales' Sport Wales show.

"And we are working very hard to do that in time for the first match.

"A transfer embargo occurs if you haven't paid the inland revenue within a certain number of days and if you have any football debts you haven't paid.

"Obviously since the new investors have come on board, we've had to work through the debts owed to various creditors - and the inland revenue was one of those."

The delay in lodging end of-year accounts and because of money owed to the brokers of defender Mark Hudson's £1m move from Charlton to Cardiff last summer also accounted for the Football League sanction.

But Jenkins insisted: "We've rectified them now and worked through various challenges.

"There are more challenges to come but we'll face up to them and try to keep the club out of an embargo so we can continue to operate and go forward.

"I can't rule out another embargo, there is certainly a possibility we can go back in and out of it.

"But we're working hard to get the club back on a sound financial and business footing which long-term means we can get out of embargos and stay out. However, there are many challenges ahead."

Jenkins is pleased Cardiff are out of their embargo, which was imposed almost two months ago, and stay out for as long as possible so Bluebirds boss Dave Jones can sign and register reinforcements for his Championship play-off hopefuls.

606: DEBATE There is always happening with City. Everyday there is bad/good news but mostly bad press about this club and I for one can't take it, it's just too much to take but I wouldn't change it for the world the next welsh wizard

Jones lost Wales midfielder Joe Ledley on a free transfer to Scottish giants Celtic in the summer but he has kept the majority of his first-team squad that missed out on Premier League promotion due to their 3-2 Championship play-off defeat to Blackpool.

Cardiff have rejected summer bids for top-scorer Peter Whittingham from Burnley and Nottingham Forest and star striker Michael Chopra from Ipswich Town as Jones hopes his side can make another top-flight promotion push.

"We have made a commitment that we want to challenge again," insisted Jenkins.

"We wanted to retain our starting XI from last season and add to it as there is no point losing a player and then not being able to add to it."

* Catch Sport Wales' Cardiff City Championship season preview on Sport Wales' football special on BBC TWO Wales on Friday at 1900 BST

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