Analysis by business advisory firm Deloitte shows total spend was around £150m, outstripping 2007's £60m spend.Top spenders were Chelsea, forking out £27m, and Tottenham Hotspur, at £20m.
Premier League clubs are investing some of the additional TV money received in 2007/08 to strengthen their squads in the pursuit of success.The spree comes on the back of a £1.7bn, three-season, deal for domestic and overseas television rights coming into effect.
The spending was not confined to teams in the top half of the table, with spending throughout the league as clubs look to challenge for top spot, qualify for European club competitions, or retain Premier League status.
Middlesbrough for example, in the lower reaches of the league paid out a record transfer fee - which was officially undisclosed - but reported at being around £12m. At the other end of the table, the biggest fee paid was by Chelsea, who snapped up Nicolas Anelka early in January from Bolton Wanderers for £15m.
The spending spree follows a record outlay of more than £530m on players in the transfer window last summer, and according to Deloitte the factors behind the recent outlays remains the same.
Paul Rawnsley, director in the Sports Business Group at Deloitte, said: "We had the record spending last summer which was fuelled by expectations that the clubs had on the back of money from television, and spending by new club owners.
"The same factors have been seen in the January window, except that now clubs have actually got their hands on the broadcasting money."
Spending between Premier League clubs - of about £55m - accounts for around 40% of all Premier League clubs' transfer spending.The rest was spent with lower league clubs, or overseas teams.
"The Premier League can obviously pull in top players from around the world," says Mr Rawnsley."There may be a debate about whether this is a good thing for the English game, but the way they are spending can be seen as a gauge of the financial strength of the Premier League."