The club have been unable to sign new players since September 2022 with a consortium headed by Australian Justin Rees now poised to take over.
Parallel discussions with the National League and HMRC have taken place over Christmas, reaching a satisfactory conclusion.
Mark Ives, General Manager of the Vanarama National League, confirms that the club are now free to sign players.
He said: “The embargo, which has been in place for around 16 months, has now been lifted following the significant developments that has satisfied both HMRC and the National League.
“We are pleased that the positive work has enabled the club to move forward following a difficult period for Southend United, its staff and of course supporters.”