Nashville is backing out of a deal to take American defender Andrew Gutman on a season-long loan from Scotland's Celtic.
Celtic said on Thursday they had agreed to a three-plus-year contract with the left-back, a 22-year-old who was a senior at Indiana and won the Hermann Trophy as the top men's college soccer player last year. Celtic and Nashville then announced the loan.
However, Nashville said in a statement on Saturday that as an "expansion member of MLS and in light of the fact that MLS does not support the transaction, Nashville will not be proceeding with the loan."
Nashville is in the second-tier United Soccer League Championship this season but will join top-tier Major League Soccer in 2020.
Gutman had been a member of the Chicago Fire Academy, and Chicago Fire general manager Nelson Rodriguez said Gutman rejected an offer to sign with the Fire.