Tony Adams has confirmed to Sky Sports News HQ that Nigel Reo-Coker and Kieran Richardson will not be joining Granada this season.
However, Adams revealed the midfield pair will be offered contracts to join the club in the summer.
Reo-Coker and Richardson had been on trial with the La Liga strugglers, but Adams has now revealed the deals cannot be completed before the end of the campaign due to cash flow issues.
"They have both been brilliant and I would really like to take them and we will be offering them deals for next season," Adams told Sky Sports News HQ.
"However, we have a cash flow situation at the moment that doesn't allow us to bring them in."
Sky sources understand La Liga have rejected the club's request to register the players due to outstanding financial issues.
Adams was appointed as Granada manager earlier this month on a deal until the end of the season following the sacking of Lucas Alcaraz.
His first match in charge ended in a 3-0 home defeat to Celta Vigo and left Granada in 19th with 20 points from 32 games, seven points adrift from safety with six games remaining.
Next up for Adams and Granada is a trip to face Sevilla on Friday, live on Sky Sports 3 HD from 7.55pm.