The Board of Control for Cricket in India has barred contracted players from joining English county teams that have players taking part in the unofficial Indian Cricket League.
Test batsman Vangipurappu Laxman was set to join Nottinghamshire after the three-Test series against Sri Lanka, while leg-spinner Piyush Chawla was to sign up with Hampshire.
However, both players have been told to avoid teams with links to the ICL. Nottinghamshire and Hampshire have players taking part in the 'rebel' league.
"The BCCI has advised its players to stay away from counties that have ICL players," board secretary Niranjan Shah told Mumbai's Mid Day on Friday.
"We are not saying that no player can play county cricket in the future. The England and Wales Cricket Board is coming out with a policy regarding ICL within a year. So we will see how it goes," Shah added.
The BCCI does not recognise the ICL, which is bank-rolled by the owners of India's largest listed media firm.
Last month the Indian board, which organised a domestic Twenty20 competition this year, announced that English county teams will be barred from this year's multi-million dollar Twenty20 Champions League if they contain players from the ICL.
