Hull City have been handed a transfer embargo for three transfer windows - which means they will not be able to pay a fee for a player until January 2027.
There are concerns over the club's finances after they were late making transfer payments to Aston Villa for the loan of winger Louie Barry last season.
That debt has now been settled but the Championship club's transfer ban is set to be confirmed by the English Football League on Friday.
City do have a right to appeal against the decision but BBC Radio Humberside understands the club owe money to a number of additional creditors, including other clubs for previous transfers.