FIFA have threatened to ban Switzerland from the sport if they fail to punish Sion for fielding ineligible players in the Europa League.
If the suspension came into force, Basel could be thrown out of the Champions League last 16, with Manchester United the likeliest club to replace Heiko Vogel s side in the competition after finishing in third place in Group C.
Sion were given a one-year transfer embargo in 2008 after FIFA ruled that they had broken transfer regulations when signing goalkeeper Essam El-Hadary of Al Ahly.
With a lengthy legal ban following, the suspension did not come into place until the winter window of the 2010-11 season and Sion breached the ban when they fielded ineligible players in their Europa League playoff victory over Celtic in August.
Sion s later appeal was rejected and the Swiss Football Association are yet to punish the club, with FIFA keen to see the FA ban the six players signed by club in the summer from competitive action.
In an official statement, FIFA criticised the attitude of the club in repeatedly trying to circumvent this decision in a legally abusive manner .
As a consequence, all matches in which the relevant players participated shall be declared forfeit or three points shall be deducted respectively, the statement read.
Should this deadline not be respected, the Swiss FA will be automatically suspended from January 14, 2012 onwards.
The terms of the possible FIFA suspension would mean that the country s national and club teams, referees and officials would be banned from taking part in international matches and meetings, and also precluded from receiving any FIFA funding.
Swiss FA officials are meeting on Saturday to decide their next course of action.
