LEEDS UNITED have been hit by a transfer ban and will not be able to sign any players for the rest of the season, after breaching the Football League's financial fair play (FFP) rules.

The Whites are one of three Championship outfits - along with Blackburn Rovers and Nottingham Forest - to be placed under an embargo.

The League announced that the three clubs all incurred financial losses more than the £8million permitted during last season.

A statement said: "An initial analysis of FFP submissions from the current 24 Championship clubs has indicated that three clubs - Blackburn Rovers, Leeds United and Nottingham Forest - have failed to meet the fair play requirement under the division's FFP rules.

"Consequently, all three will be subject to an 'FFP embargo' under Football League regulations from January 1, 2015 for the remainder of the current campaign."

Under the transfer embargoes, the three clubs will be prohibited from signing any new players - either on a permanent or loan deal - unless they have 24 or fewer "established players", which is described as 24 players aged 21 or over that have made at least five starts for the club.

The clubs will have their embargoes lifted at the end of the season if they can demonstrate they have stayed within the maximum permitted losses of £6million - £3million losses plus £3million covered by shareholder investment - for the current season.

Submissions from QPR, Leicester and Burnley - who were all promoted to the Premier League - plus the three clubs relegated last season will now be considered by the Football League.

The statement added: “The Football League is currently in discussions with a number of other clubs over their FFP submissions and will confirm any further FFP embargoes, if any, in due course. It will also now consider submissions from the three clubs promoted to the Premier League and the three clubs relegated to League One at the end of the 2013/14 season.

"Clubs under an FFP embargo will not be permitted to pay transfer fees or compensation fees for professional players.

"Clubs under an FFP embargo will not be permitted to pay a loan fee to another club, they may only pay the player’s wage (or a contribution towards it).

"For incoming players, clubs can only pay agents’ fees as a benefit in kind to the player in question (as long as they do not exceed the £600,000 employee costs limit).”