Fifa have threatened to suspend Switzerland over the legal case involving first division club Sion, soccer's governing body said in a statement on Saturday.
The Swiss FA was given a deadline of January 13 to resolve the matter, Fifa said.
"Should this deadline not be respected, the Swiss FA will be automatically suspended from 14 January 2012 onwards," said Fifa in a statement.
If suspended, Switzerland - due to host Argentina in a friendly in February – would not be able to play any international matches and FC Basle would be unable to take part in the Champions League round of 16 tie against Bayern Munich.
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