Russian oligarch Roman Abramovich has been disqualified by the Premier Legue as a director of Chelsea football club.
However, the sale of the west London club is expected to go ahead with Government oversight.
Number 10 is keen for the Champions League title holders to continue to play.
On Thursday sanctions were imposed on the 55-year-old owner – freezing his UK assets.
A Government spokesman said:
“We are open to a sale of the club and would consider an application for a licence to allow that to happen.
“We are absolutely clear that any such licence would not allow Roman Abramovich to benefit from the sale.”
Chelsea FC can now spend up to £900,000 on match-day costs – up from £500,000 – following talks with the Government.
Travel costs for away games stay at £20,000.
But the club can keep prize money this season from competitions.
The Premier League board’s decision to disqualify Abramovich is unlikely to have any real impact.
The club sale is already underway, and it doesn’t stop Chelsea from playing games.
Abramovich has always denied any direct links to Russian President Vladimir Putin and his regime.
There is strong interest from British and overseas consortiums to buy the club.