Everton will have to pay up the final year of Alex Nyarko's contract even though the Ghana international's work permit has expired.
The news is yet another massive financial blow as David Moyes looks to generate cash to spend in the transfer market.
Nyarko will not be able to play for the Blues again after his application for an extension of his work permit was rejected by a tribunal sitting in Sheffield on Tuesday.
Because there is no appeal against the decision, it means Nyarko has played his last game for Everton and unless he finds another club on the continent, he will sit out the final 12 months of his Goodison deal on full pay as per the terms of his contract.
Although he signed a five-year deal when he arrived from Lens in summer 2000, at the time Nyarko could only secure a work permit to cover the first four years of his contract.
The fact that he has not been a regular first-team player over the last three years - following his on-pitch bust-up with an Everton fan at Highbury - weighed heavily against him when he applied for the 12-month work permit extension, as did his retirement from international football in 2001.
As well as being a massive blow to the club financially, Nyarko's unavailability places even more pressure on Moyes to strengthen his midfield before the start of the new campaign.
After loan spells at Paris Saint-Germain and Monaco, Nyarko appeared to be settled back in at Goodison last season even though he made only 10 starts and five substitute appearances for the first team.
Earlier this year, he had intimated he was ready to make a fresh start at the club.
He said: "My work permit finishes in June and I still have another year left on my contract. I don't know what will happen but I hope to be an Everton player as I am today."