Coventry have confirmed they have had a transfer embargo imposed on them by the Football League.

The ruling has been made following the collapse of the takeover by Manhattan Sports Capital Partners Ltd, leaving the Coca-Cola Championship club in a difficult financial situation.

Coventry confirmed tabloid reports with statement on their official website, which read: "Coventry can confirm it is currently under a transfer embargo, imposed by the Football League.

"But the club would like to stress that takeover talks with other groups have progressed well over the past seven days and a solution is in sight.

"This is by no means an ideal situation for Coventry City, (manager) Iain Dowie or the Sky Blues' local fans. However, the club would like to stress that the board are working towards finding the best outcome possible to take Coventry City forward. This will hopefully be at the earliest opportunity."