Paul Hart's men had attempted to sign the former Nottingham Forest midfielder Eugen Bopp on Monday, but the Premier League blocked the move.
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Hart knows Bopp, who is currently a free agent after being released by Crewe Alexandra, from their time together at The City Ground.
Premier League spokesman Dan Johnson said: "We can confirm that there is an embargo on Portsmouth registering any new players."
Saudi businessman Ali Al Faraj took over at Fratton Park three weeks ago, buying a 90 per cent stake from previous owner Sulaiman Al Fahim, while Israeli Levi Kushnir and Hong Kong-based Balram Chainrai have since emerged as potential investors in the ailing club.
However, the transfer ban is the latest in a long line of off-the-field problems for the club.
There was a delay in the players' wages being paid in September, while the club was on the brink of administration in August.
Source: DSG
