FIFA has hit Al Nassr with a transfer ban blocking the Saudi Pro League club from registering new players.
The sanction was issued after Al Nassr failed to make a payment of £390,000 to Leicester City.
The money is owed regarding a 2018 transfer which saw Nigeria striker Ahmed Musa move from Leicester to Al Nassr.
An initial transfer fee was paid as agreed but Al Nassr did not make a further payment after a performance-related clause had been triggered.
FIFA first ordered Al Nassr to pay up in 2021, when a warning was issued about the potential of a transfer ban.
That warning went unheeded and Al Nassr were sanctioned this week.
Al Nassr signed Cristiano Ronaldo and Marcelo Brozovic earlier this year and had been expected to make more marquee signings.
The Jeddah club may still be able to recruit more players before the start of next season as FIFA has said that it will lift the ban if Leicester receive what is owed to them.
A FIFA statement read: "The relevant bans will be lifted immediately upon the settlement of the debts being confirmed by the creditors concerned."
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