New York City has received a green light from a federal appeals court to proceed with a plan to sell 2,000 new yellow taxi medallions despite a pending challenge from advocates for the disabled.

A lower court previously had ruled that taxis are not in compliance with the federal Americans with Disabilities Act.

A U.S. district court had ordered the Taxi & Limousine Commission to produce a comprehensive plan detailing how its existing regulations adhered with the ADA before it could issue the medallions.

The Second U.S. Circuit Court of Appeals stayed the district court ruling on Wednesday.

The TLC said the 2,000 new yellow cabs will all be wheelchair accessible, as will 20 percent of the new hail borough livery cabs.