FIFA has reportedly banned South African top-flight side Royal AM from registering new players with immediate effect.

According to SABC Sports, the transfer ban comes after the club failed to settle a R12-million ($643,000) outstanding payment to striker Samir Nurkovic, whose contract they unlawfully terminated last year.

Nurkovic approached the world football governing body, and after months of deliberations by the tribunal, a ruling was awarded in favour of the player.

The South African public broadcaster adds that FIFA has since sent communication to SAFA ordering a ban on Royal AM for the registeration of players at national level, effective Monday, 3 July.

The sanction can only be lifted once the side, owned by flamboyant businesswoman Shauwn Mkhize, pays the outstanding R12-million in full.

Royal AM are expected to fight the case at the Court of Arbitration for Sport [CAS] to prove FIFA were biased towards Nurkovic and only ruled on his “version of events.”