Sydney have won a small concession from the AFL with the league agreeing to soften the trade and free agency sanctions it slapped on the club last year.

The AFL banned the Swans from taking part in the trade and free agency periods at the end of the 2014 and 2015 seasons as they sought to phase out the controversial cost of living allowance that allowed the club to lure high-profile recruits Kurt Tippett and Lance Franklin in recent years.

The initial ban effectively meant the Swans could only add to their senior playing list via the draft or by bringing in delisted free agents.

Under the softened conditions, the Swans can now trade or make free agent offers to any players whose contract is at or below the current average wage for a listed-player in the AFL who has served more than two years in the competition.

The current average AFL wage, excluding first and second-year players, is $340,000 a year, which effectively still rules the Swans out of making any plays for high-profile talent.

The Swans were dismayed by the sanctions when they were imposed, given they hadn’t broken any AFL rules in recruiting Franklin or Tippett, despite protestations from around the competition that the club had a competitive advantage in recruiting given the extra money it their salary cap.

Club football manager Tom Harley was thankful to have won a small concession, but admitted he had hoped for the restrictions to be removed altogether.

“We certainly appreciate being back involved in the trade period and free agency period for this season and going into next season,” Harley told the club’s website on Wednesday.

“It’s fair enough to say that in an ideal world we’d like to be unrestricted, but we certainly accept the AFL Commission’s decision and we’ll move on with our list management strategy.”

The cost of living allowance will be phased out by the end of the 2016 and will be replaced by a rental subsidy scheme.