Football League authorities have prevented Southend from extending George Friend's loan deal until they settle a debt to HM Revenue & Customs.
The Shrimpers revealed last week that Wolves full-back Friend would be staying at Roots Hall for a further month, says the Mirror.
But the Football League informed the League One side on Friday that the deal could not be sanctioned, due to their debt to HMRC.
A statement on Southend's official website read: "On Monday last week the club agreed to extend George Friend's loan with Wolverhampton Wanderers.