Birmingham City have issued a statement confirming they are under transfer embargo.
The Sky Bet Championship club failed in their attempts to resolve their Financial Fair Play obligations and overturn a temporary transfer ban.
They said in a statement: “The club has spent several months working diligently to satisfy the EFL.
“Unfortunately and disappointingly the EFL are currently refusing to allow us to make additions which would enable us to strengthen the manager’s squad.
“We are hopeful that a satisfactory agreement can be reached with the EFL as soon as possible to help ensure our continued competitiveness in the Championship.
“We fully understand supporters’ frustrations over this issue in the wake of recent speculation and rumour. We share those frustrations.
“The club asks supporters to maintain the fabulous and passionate backing they have given to Garry Monk and the team since the manager’s appointment – it is hugely appreciated and when we have that togetherness and strength in numbers it can make a big difference.
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“The board of directors are ambitious and are committed to improvement and bringing success to the club, in all aspects on and off the field.
“And supporters can rest assured that we are doing everything in our power to address this current situation.
“The club will make no further comment. We thank you for your understanding.”
The embargo puts into question the immediate future of new signing Kristian Pedersen, who arrived at St Andrew’s from German side Union Berlin last month.