Portadown Football Club has fended off a winding up petition at the High Court in Belfast.
Proceedings were brought against the Irish League side over an unpaid bill.
But during a brief hearing on Thursday a Crown solicitor confirmed that the undisclosed debt has now been settled.
She said: “My application is to have it dismissed with no order to costs.”
Bankruptcy Master Kelly agreed to the move, saying: “It has been paid in full.”
The petition is understood to have been brought on behalf of revenue officials.
Portadown FC has endured a turbulent 12 months, culminating in relegation from the top flight of local football.
The club began the season in the Danske Bank Premiership with a 12-point deduction after being found to have made irregular payments to players.