Fifa has banned Chelsea from making any transfers until 2011 due to the club’s conduct in signing a French youth team player.
Ligue 1 side Lens took their case to Fifa after Gael Kakuta moved to West London in 2007.
Fifa’s Dispute Resolution Chamber (DRC) has found that the club induced Kakuta to breach his contract with Lens.
The player has been fined 780,000 euros and banned from playing for four months. A statement on Fifa’s website stated:
“Chelsea are banned from registering any new players, either nationally or internationally, for the two next entire and consecutive registration periods following the notification of the present decision.”
The Blues will also have to pay Lens 130,000 euros in compensation.
Kakuta was voted scholar of the year by Chelsea’s Academy staff in 2008 and ended that season as the youth team’s top scorer.
Chelsea has yet to comment on the ban.