Oxford United were today set to sign goalkeeper Andy Woodman on a month's loan from Colchester.
Woodman will make his U's debut in tomorrow's Division 3 game at Rochdale because both Ian McCaldon (thigh) and Richard Knight (shoulder) are injured.
However, the Football League rejected United's request for special dispensation to sign Woodman on loan.
The permission was needed because they already had two other players on loan.
It meant that the second month loan agreement with David Morley had to be cancelled.
But after talks with United officials last night, Morley has joined the club on a permanent basis until the end of the season, on a free transfer from Carlisle.
Director of football Ian Atkins was disappointed that the League turned down United's request for dispensation because Oxford have now had to use up a loan on a goalkeeper for a month, and Knight could be fully fit in a week's time.
"This is in the third division - we're not talking about a club going for the first division title - and in any case, this is all genuine anyway because we haven't got a fit keeper.
"They say they can't do it because of a regulation that dispensation cannot be granted when one of a club's current loans exceeds 28 days, and that was the case with Morley.
"So David had the choice of either going back to Carlisle or joining us on a free transfer, which he has agreed to do. It gives him the opportunity to prove to us that he deserves a longer contract."
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