FIFA have suspended Peru from international football because the government is interfering with the running of the national federation.
Football’s governing body gave the sides a month to settle their differences before its executive committee discusses the issue at a meeting December 19-20 in Tokyo.
FIFA rules prohibit political interference in football affairs, but Peru’s government has refused to recognize the election of Manuel Burga as president of the Peruvian Football Federation (FPF).
“The FPF will only be allowed to return to the fold of the world and South American football communities on the basis of negotiations with the president and the board of the FPF who were elected in October 2007,” FIFA said in a statement.
Peru is now suspended from the 2010 World Cup, although the national team is not due to play again until a home match against Chile next March 28.
The dispute has already cost Peru hosting rights for the South American Under-20 championship next year. Venezuela has stepped in to stage the tournament instead.
Peruvian clubs are barred from playing teams from other countries following the FIFA ruling.