The soap opera surrounding the English Premier League club has dragged on for months with Mackay seemingly at loggerheads with Malaysian tycoon and owner Vincent Tan who is now unhappy about the manager's wish for three January signings.
"Tan Sri Vincent Tan was extremely upset to read quotes from the manager concerning the possibility of new recruits before he had been informed whether funds would be made available," chief executive Simon Lim said in a statement carried by British media.
"He believes that doing so unfairly raises supporter expectations, placing unnecessary pressure on the club. As such he (Tan) has stated that not a single penny will be made available in January."
Iain Moody, seen as a Mackay ally, was sacked as head of recruitment in October because of "overspending of 15 million pounds ($24.45 million)" and was replaced by an unknown 23-year-old Kazakh whose appointment was suspended pending a visa probe.
The Welsh club has lurched from one public relations calamity to the next despite promotion to the Premier League last season.
Tan had already upset fans by changing the team's home kit from blue to red to boost marketability given Wales's national colour is red.
Cardiff, who brought in the likes of Gary Medel and Peter Odemwingie in the last transfer window, are sixth from bottom in the league.
($1 = 0.6136 British pounds)