Reading FC have been placed under a transfer embargo by the EFL after breaching Profit and Sustainability rules. 

Derby County and newly-promoted Hull City have also been placed under the embargo along with the Royals. 

It is currently not known how long the club has been under the restrictions.

Excessive spending in previous years has led to the club being severely restricted in recent transfer windows.

READ MORE: Reading FC midfielder Michael Olise closes in on Crystal Palace move

EFL guidance states that: "'An embargo prevents a club from strengthening its team or adding to its playing staff costs until such time as it has met its existing financial obligations and/or the club has rectified the relevant breach of EFL regulation."

The news means that the club are likely to be limited to either loan deals or free transfers during the transfer window.

READ MORE: Ex Reading FC striker slams former Royals boss Steve Clarke

The club has been taking action in an attempt to reduce the wage bill, most recently releasing high-earners Sam Baldock and Sone Aluko.

Reading did not receive a transfer fee for Omar Richards, who joined Bayern Munich at the end of his contract.

Midfield star Michael Olise is expected to join Crystal Palace in the near future, with the deal thought to be for an £8m fee.