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Chinese basketball officials said Denver Nuggets prospect Xue Yuyang is not ready for the NBA and will not be allowed to play in the United States next season.

"It's an internal matter that we are going to work through the proper channels to resolve," Nuggets spokesman Tommy Sheppard said.

The 7-foot Xue was drafted 57th overall by the Dallas Mavericks on Thursday night, then traded to the Nuggets for a second-round pick in 2004.

In a statement appearing in Chinese newspapers, the Chinese Basketball Association said Xue wasn't ready for the NBA and his participation in the draft violated regulations.

"Xue Yuyang's selection shows China's own-trained athletes have received international recognition and is a good thing," the statement said.

But it added that Xue needed to "train with the national team, play in international competitions, build up experience, improve his skills and strengthen himself physically for the grueling competition of the NBA.

"When conditions are ripe, the Chinese Basketball Association will support him to go play in the NBA."

The statement said Xue's agents violated notification rules in entering him in the draft, but didn't say if anyone would be punished.

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