diff --git a/src/libs/ReportSecondaryActionUtils.ts b/src/libs/ReportSecondaryActionUtils.ts
index b397963f1c2a..9be38b2abadc 100644
--- a/src/libs/ReportSecondaryActionUtils.ts
+++ b/src/libs/ReportSecondaryActionUtils.ts
@@ -532,7 +532,7 @@ function isChangeWorkspaceAction(report: Report, policies: OnyxCollection<Policy
     }
 
     const submitterEmail = getLoginByAccountID(report?.ownerAccountID ?? CONST.DEFAULT_NUMBER_ID);
-    const availablePolicies = Object.values(policies ?? {}).filter((newPolicy) => isWorkspaceEligibleForReportChange(submitterEmail, newPolicy));
+    const availablePolicies = Object.values(policies ?? {}).filter((newPolicy) => isWorkspaceEligibleForReportChange(submitterEmail, newPolicy, report));
     let hasAvailablePolicies = availablePolicies.length > 1;
     if (!hasAvailablePolicies && availablePolicies.length === 1) {
         hasAvailablePolicies = !report.policyID || report.policyID !== availablePolicies?.at(0)?.id;
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 26afd195e9a1..9c2aa455318b 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -12248,11 +12248,13 @@ function doesReportContainRequestsFromMultipleUsers(iouReport: OnyxEntry<Report>
 /**
  * Determines whether the report can be moved to the workspace.
  */
-function isWorkspaceEligibleForReportChange(submitterEmail: string | undefined, newPolicy: OnyxEntry<Policy>): boolean {
+function isWorkspaceEligibleForReportChange(submitterEmail: string | undefined, newPolicy: OnyxEntry<Policy>, report?: Report): boolean {
     if (!submitterEmail || !newPolicy?.isPolicyExpenseChatEnabled) {
         return false;
     }
-
+    if (report && report.stateNum === CONST.REPORT.STATE_NUM.APPROVED && report.statusNum === CONST.REPORT.STATUS_NUM.CLOSED && !isPolicyAdminPolicyUtils(newPolicy)) {
+        return false;
+    }
     return isPaidGroupPolicyPolicyUtils(newPolicy) && !!newPolicy.role;
 }
 
diff --git a/src/pages/ReportChangeWorkspacePage.tsx b/src/pages/ReportChangeWorkspacePage.tsx
index 81209f3134cf..2c44e1816499 100644
--- a/src/pages/ReportChangeWorkspacePage.tsx
+++ b/src/pages/ReportChangeWorkspacePage.tsx
@@ -135,7 +135,7 @@ function ReportChangeWorkspacePage({report, route}: ReportChangeWorkspacePagePro
         localeCompare,
         additionalFilter: (newPolicy) => {
             const isReportSettled = isSettled(report);
-            const isEligible = isWorkspaceEligibleForReportChange(submitterEmail, newPolicy);
+            const isEligible = isWorkspaceEligibleForReportChange(submitterEmail, newPolicy, report);
             if (isReportSettled) {
                 return isEligible && isPolicyAdmin(newPolicy, session?.email);
             }