Leeds have received permission to play in League One this season after being granted their Football League share but must do so with a 15-point deduction.
The club have appealed against the sanction imposed by the Football League and their case will be heard at a special meeting of all league clubs.
Doubts had been raised over Leeds' future after the club failed to agree a Company Voluntary Arrangement (CVA).
The Football League accepted there were "exceptional circumstances".
But in making their decision, it was stressed they could not allow Leeds to operate outside the strict rules concerning administration.
606: DEBATE
Leeds are back under the control of Ken Bates after administrators KPMG sold the club to him for an undisclosed sum.
The CVA would have allowed Leeds to pay off an acceptable amount of their debts to creditors.
"The Football League Board agreed that, notwithstanding the manner in which this administration has been conducted, the club should be permitted to continue in the Football League," said a statement.
"Consequently, the board has decided to make use of the 'exceptional circumstances' provision within the League's insolvency policy, for the first time, and agreed to transfer the club's share in The Football League to LeedsUnited 2007 Ltd. Accordingly, the club's share has now been transferred.
"However, it is acknowledged the club did go into administration and has been unable to comply with the terms of the League's well-established insolvency policy.
"We are now planning the appeal and we are able to complete the squad rebuilding for the 2007/08 season"
Football League chairman Lord Mawhinney met with both KPMG and Bates, telling them to change the CVA, which governs how much creditors will get.
Leeds have lodged an appeal against this sanction, which will be heard at a special meeting of all League clubs, to be arranged in due course.
A club statement said: "The club has received an amount of criticism from supporters for not keeping them up to date with developments during what has been a very difficult time for us all.
"We appreciate this policy was difficult for fans to accept, but please be assured that this has been done in the best interests of Leeds United, which is justified by the return of the share.
"We are now planning the appeal and we are able to complete the squad rebuilding for the 2007/08 season, albeit with only one week to go before our first League One game at Tranmere."
Leeds boss Dennis Wise has said not being able to sign players has been a problem and hopes the punishment can be lessened.
"We need to get 105 points now to win the league," he told Five Live. "It's different.
"We have to get on with it. It's something that has been put in front of us and we have to deal with it.
"Hopefully, something will happen, a few things will change and it won't be 15 points because it's not a nice situation to be in."
~RS~q~RS~~RS~z~RS~50~RS~)