Portsmouth administrator Trevor Birch has confirmed that the Premier League are not part of an agreement to pay money to a third party.
Birch has had to clarify his comments after previously explaining that former owner Sacha Gaydamak had been assigned £2.2million by the Premier League.
He went on to say that Gaydamak was to receive the payments in the next four instalments, rather than being paid to the club.
But he has since changed those comments, explaining that the Premier League is not holding back money.
Birch said: "On Thursday, I made a statement about the finances of Portsmouth FC and referred to the possibility of parachute payments from the Premier League being paid to a previous owner of the club.
"I want to make it absolutely clear that the Premier League is not a part of any agreement to pay money to a third party.
"As I stated, the issue is that a mechanism was put in place by the old company, which had the effect of giving an assignment of £2.2million of parachute payments to a previous owner.
"At this moment in time the Premier League is not withholding any funds due to Portsmouth, and I regret any misunderstanding this may have caused.
"In the meantime, we are continuing to negotiate with the Football League and the PFA in order to unlock additional funds for the club."
Portsmouth are in danger of not being able to finish the Championship season, according to the administrators.
They have suffered a 10 point deduction after going into administration for the second time in as many years last month.
It means that they are now second-bottom in the division, five points away from safety with 14 games remaining.