Uefa has warned clubs that they will face sanctions if they refuse to comply with quotas of homegrown players in squads.

From 2006-07 teams must submit a 25-man ‘A’ squad with at least two players from the club academy and two others from the same national association.

This figure will rise to a maximum of eight ‘homegrown’ players in subsequent seassons, and clubs could be punished with reduced squads.

Arsenal, who had 16 overseas players for Monday’s game with Crystal Palace, have been fiercely critical of the proposals.

“I don’t look at the passport of people, I look at their quality and their attitude,” said Arsenal manager Arsene Wenger after Monday’s game.

However, UEFA have warned clubs that they will be punished if they do not fulfil their quotas.

“The sanction is fairly simple – if you don’t have the four and four for 2008-09, your squad will be cut by the number of players that do not meet the criteria,” said Uefa spokesman William Gaillard.

In April a Uefa Congress in Estonia will vote on whether to implement the measures in domestic competitions as well.