Danny Wilson will stay at Hearts at the end of his loan deal from Liverpool after the Scottish Premier Football League confirmed his registration will continue.
The Gorgie side, who entered administration earlier this month, had announced the 21-year-old would join them permanently on a three-year deal starting in July when his six-month loan expired.
However, the deal appeared to be off when administrators BDO came in to sort out the club's financial problems, with striker John Sutton made redundant on Thursday before he signed a two-year deal with Motherwell.
Wilson agreed to take a pay cut to stay at Tynecastle.and the SPFL confirmed the deal would not count as a new registration, and would be allowed under their current embargo.
A statement on the official Hearts website said: "Heart of Midlothian FC is pleased to confirm that Danny Wilson is to remain at Tynecastle following his period on loan from Liverpool.
"The Scotland international's contract with the Anfield outfit expires today (Sunday, June 30) but he will keep featuring in maroon after the SPFL confirmed that his registration will continue.
"Although the current administration which the club is subject to has meant an embargo on new player registrations, as the 21-year-old is already registered with the club there is no restriction on his move from Liverpool to Hearts."
The SPFL confirmed Wilson would be allowed to remain with the Jambos.
It said in a statement: "The SPFL Player Registration of Heart of Midlothian FC player Danny Wilson would, had he not agreed a contract extension, have terminated on 30 June.
"The SPFL has now received documents extending the contract of the player. As a result, the player's existing SPFL Registration is automatically extended and is not affected by the embargo on new SPFL Player Registrations currently in place on Heart of Midlothian FC as a result of Heart of Midlothian plc (in administration) being in administration."
Hearts manager Gary Locke was happy the situation had reached a positive outcome.
He said: "I am really pleased. Danny was already due to be part of the team and the administration has made no difference to his status.
"I appreciate that there have been some difficult decisions made regarding player redundancies.
"But given that Danny has agreed to a wage cut and is happy to be playing for Hearts, this gives us an opportunity to improve the team for the forthcoming season so why wouldn't we jump at the chance to have him on our side?"
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