Faizabad District Magistrate Vipin Kumar Dwivedi said the restrictions will, however, not stop the devotees who turn up for performing daily rituals.
Restrictions were imposed after inputs from intelligence agencies that VHP's proposed Yatra might disturb the communal harmony and peace, Dwivedi said.
"The dispute of Babri Masjid-Ram Janam Bhoomi is pending before the Supreme Court and VHP's motto behind this Yatra is communal polarisation which may result in communal clash," the order issued by the district administration stated.
Last week, the international general secretary of the Vishwa Hindu Parishad, Champat Rai, had announced that the seers would undertake 'Paanch Kosi Parikrama Yatra' around Ayodhya from September 22.
Dwivedi said the restrictions are not imposed on "traditional and non-political Parikrama", which routine devotees perform.
Massive restrictions were imposed in the twin towns of Ayodhya and Faizabad last month and large a number of VHP supporters were arrested to stop them from taking part in the 'Chaurasi Kosi Parikrama Yatra', which was banned by the Uttar Pradesh government.