Fifa's "six plus five" proposal on foreign players has been branded as discriminatory and illegal by the European Commission.
"We're giving red card to the rule," said Vladimir Spidla, Europe's Commissioner for Equal Opportunities.
President Sepp Blatter wants to limit the number of foreign players in each team to five by 2012.
And he said he expects the plan to be endorsed by Fifa delegates at the ruling body's congress later this week.
Blatter is keen to work with the European Union and Uefa to make it a reality.
However, the Commission believes a quota on foreign footballers would be incompatible with European Union law which allows workers from the EU to move freely between member countries.
As reported by BBC sports editor Mihir Bose last week, Blatter has backed off his initial intention to take on the EU and its laws if necessary to force the plans through, stressing Fifa would proceed "within the law".
But while in Sydney for Fifa's annual conference this week, Blatter suggested rules restricting the number of foreign players could still start in the 2010/11 season, with a minimum of four home-grown players being required in each team.
He added he expects it to grow to six, with a maximum of five foreigners, by 2012/13 - and claims the plan has the backing of key European delegates.
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