Coventry City have confirmed reports that they are currently the subject of a Football League transfer embargo.
It was imposed after City failed to meet instalment payments for Leon Best's transfer from Southampton.
US-based Manhattan Sports Capital Partners Limited recently withdrew their interest in taking over the club.
But the club insisted in a statement that "takeover talks with other groups have progressed well in the past seven days, and a solution is in sight".
City's debts were recently estimated at £28m.
Earlier this month, they lost the services of chairman Geoffrey Robinson and managing director Paul Fletcher, who both resigned.
Best's fee was set at £650,000 by a tribunal and was due to be paid in instalments, but the Sky Blues failed to make one of the payments.