Rochdale player-manager Paul Simpson has been told he can strengthen his squad with the proceeds from the club's FA Cup heroics.

However, the money can only be spent on wages as the Spotland board are not prepared to sanction transfer fees.

"I've been given permission to bring in players on free transfers and they will have to go on the wage budget and it's something I'm looking at doing," said Simpson.

"It would be wonderful if we were in a situation where we could go and spend a lot of money on players, but we can't.

"We have to be realistic. We are in the Third Division and we are a club that's not rolling in money," Simpson told the club's website.

Simpson has guided Dale into the fifth-round of the FA Cup for only the second time in their history.

He next takes his side to former club Wolves for a BBC televised tie, which will take the club's income from their cup run towards the �500,000 mark.

Simpson's first bit of transfer business has seen turn Gavin Melaugh's loan spell from Aston Villa into a permanent deal.