Why am I encountering the error 'Could not determine original disk information' when running virt-clone on RHEL5.4?

Issue

Trying to clone a virtual machine from one physical host to another using the virt-clone command but the following error is encountered:

[root@pe1950-3 ~]# virt-clone --connect xen+ssh://root@pe1950-2/ -o clonetest -n clonetest2 -f /var/lib/xen/images/clonetest2.img
root@pe1950-2's password:
ERROR    Could not determine original disk information: Cannot use storage '/var/lib/xen/images/clonetest.img': '/var/lib/xen/images' is not managed on the remote host.