The news will come as a shock to Blues fans after the side announced the signing of ex-Yeovil player Anthony Barry earlier in the week.

According to a statement on the PFA wesbite, "the majority of players at the club" have not been paid for two months.

The full statement reads: "In response to recent reports with regard to Chester City's attempts to sign players for the 2008-09 season, the PFA wishes to clarify the situation to ensure that all members are fully aware of the issues that the club is currently facing.

"The PFA has provided financial assistance to the club for some time to assist in the payment of players' wages.

"The majority of the players currently at the club have not received any payment for two months, or more.

"The PFA have, therefore, advised the Football League of the monies outstanding to the players, and the Football League has applied Regulation 46.1 and placed an embargo upon the transfer of any registration by the club until such times as the payments due to the current playing staff are made.

"It was felt it was incumbent on the PFA to advise its members of the potential difficulties that this club is facing at the present time."

More reaction to the news in Monday's Evening Leader.