Green has already revealed that he might be forced to accept the 12-month ban in order to assure football is played at Ibrox next season.
The SFA followed the SPL in vowing to facilitate the Rangers newco's admission to the Irn-Bru Third Division after Dundee were promoted the top flight to replace the Glasgow club. But agreement needs to be reached between Green's Sevco Scotland company and the SFA for the relaunched Rangers to make their debut in a Ramsden's Cup first-round clash against Brechin at Glebe Park on July 28.
Rangers successfully challenged the transfer ban in the Court of Session before Sevco bought their assets when they were consigned to liquidation.
A judge ruled the sanction was not open to the SFA but the stated punishments range from ejection from the Scottish Cup to suspension or termination of membership.
The SFA would have no control over the outcome were they to hand the decision back to their independent appeal tribunal and chief executive Stewart Regan, who was handed a vote of confidence by the board on Monday night, has asked Green to accept the transfer ban and £160,000 fine, as well as promising to pay back the circa-£3million in football debts that Rangers owed.
Green is now resigned to losing Romanian defender Dorin Goian and United States pair Carlos Bocanegra and Maurice Edu and does not believe a transfer ban is realistic given manager Ally McCoist had already lost a full team of players this summer.
Green told Sky Sports News: "The difficulty we have is we've been working for many, many weeks now on these issues and there is a point where unless I as CEO accept sanctions then we won't be granted permission to join the SFA.
"But it's a balance between what's fair and what's required."
Green, who on Monday told Ibrox staff there will be job cuts, added: "We are now accepted as a member of the football league but we are unable to even play a friendly and the first cup game is in less than two weeks. It does increase the pressure on Ally (McCoist) even further. We're asking him to manage a club where the SFA still want to put some transfer embargo on us and we haven't got any players at all."