London Welsh will start the new season in the Championship following a successful takeover by Red Dragon Rugby Ltd - but they have been docked five points for going into administration.
Red Dragon Rugby's acquisition of the club was completed over the weekend and the Rugby Football Union are satisfied the deal meets all their conditions.
Among their demands, the RFU had stipulated any new investor must have enough funds to support the club for at least two years.
Administrators Tenon Recovery applied to the courts this morning to release the club from administration.
The maximum points deduction for a club going into administration is 15 but the RFU reduced the penalty on the basis that all creditors, except for shareholders and directors, be paid.
"London Welsh are once again solvent and so will continue to play in the Championship in the upcoming 2009/10 season," the RFU announced in a statement today.
"However, the RFU can confirm that London Welsh will start the 2009/10 season with a five-point penalty.
"This is due to the club going into administration and its failure to inform the RFU of their intended administration when they became aware it was likely to happen contrary to RFU regulation 3.6."
London Welsh called in the administrators after chairman and principal investor Kelvin Bryon announced he was unable to bankroll the club's push for promotion into the Guinness Premiership.
The club announced it was looking for new owners to invest an additional £1million-1.5million per year.