Birmingham City confirm transfer embargo enforced by English Football League
Birmingham City have confirmed they can not sign players because of a transfer embargo but talks "remain ongoing" with the English Football League.
The Championship club have not made a new signing since Union Berlin left-back Kristian Pedersen joined in June.
The ban relates to regulations on profitability and sustainability.
"Unfortunately and disappointingly the EFL are currently refusing to allow us to make additions to strengthen the squad," a club statement said.
"Talks remain ongoing in regard to profitability and sustainability regulations. The club has spent several months working diligently to satisfy the EFL.
"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."
Earlier on Monday, an EFL spokesperson told BBC Sport: "The EFL has been in regular contact with the club throughout the summer and set out on 13 July our requirements in respect of the basis upon which the club would be able to make additions to Garry Monk's squad."
Speaking after Saturday's pre-season friendly against Brighton, manager Garry Monk - when asked if new arrivals were likely - told BBC WM 95.6: "We're still waiting for confirmation from the EFL.
"Yes of course [it's frustrating] but that's something that's out of my hands. In the meantime I have to just do what we're doing and get us ready for the start of the season."
Monk was named as Birmingham manager on 4 March and steered them to a 19th-place finish last term, securing their survival in the Championship on the final day of the season.
Their 2018-19 campaign gets under way at home to Norwich City on Saturday.