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My apologies if this bug has been discussed before. I have just found it myself - this is how to 'activate it'.
Select any player who has a contract running out and approach them with a contract yourself. After they have agreed to sign for your team, go to the player's profile and cancel the deal.
The player will still be listed as joining you, but he won't. As a result you won't get the player, but he won't be able to move or sign with anyone as his status is jammed on 'Fut'. This happened to me twice - the first with Dominic Matteo who I suddenly saw sense and cancelled the deal with, and the second with Mark Gonzalez which was slightly more annoying. I had Mark joining me in June on a free but as it was December and I needed an AML desperately I cancelled that and was hoping to be able to purchase him immediately from Liverpool so we could get him in January.
Some 2 seasons later Mark's status still claims he is joining us and he is now on a free and unable to be signed by anyone .