Yes. There are a LOT of threads about the same issue and the ONLY solution at this point in time is to upload your image off site and link it in.
As Nick said, you the only way that it appears possible to do is to upload it to an external image hosting site and then link the file from the external source.
Enter the URL for the image into the "Link off Site" field on the User Control Panel, Edit Avatar tab, make sure that the IMG tags have been removed that are often added to the URL if you have used the copy link option provided by the hosting site. Ensure the "Avatar Dimensions" are set correctly or left blank for automatic dectection and click "Submit".
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