The winding-up petition issued to Leeds by Sport Capital has been dismissed by the High Court, meaning the club's bank account can be unfrozen.
The case was adjourned on 10 June, but the Championship side were ordered to pay back £958,000 before 23 June, which was completed last week.
The money was given as a loan, but a winding-up petition was issued after the date for repayment was missed.
Sport Capital's attempted takeover of Leeds fell through in January.
Italian businessman Massimo Cellino later took control of Leeds, and now the winding-up petition has been lifted the club can pay their players' wages.