Elche will play in La Segunda next season after making a €2.9m cash payment to Spanish treasury Hacienda on Friday.
A statement on the LFP’s official website broke on Friday evening, confirming the news.
Marca reports a €2.9m payment was made to the tax office, consisting of donations from local businessmen and supporters, the latter of whom had their membership fees advanced.
The other €1m, owed to players, was also written off by the players following an agreement with the AFE.
Finally, Elche agreed an extension with Hacienda to delay payment of income tax until September.
The Valencians, who were relegated from La Liga earlier in July for outstanding tax debts, were faced with the prospect of further demotion to Segunda B if no payment was made before 23:59 CET on Friday.