Fifa has said it will scrap plans for a minimum of six "home-grown" players in clubs' starting line-ups.
The so-called "6+5" rule had been expected to be brought in by 2012 but has now been abandoned.
Football's world governing body, at its congress in South Africa ahead of the World Cup kick-off, said it will now look at "other eligibility" options.
BBC Sport understands the European Commission said such a proposal would contravene EU labour laws.
From next season, the Premier League will bring in a system where there must be eight home-grown players in squad of 25.
Also at the congress in Johannesburg, Fifa president Sepp Blatter said he would seek another term of office next year.
"I have not yet completed my mission as president of Fifa, I am motivated to go for another term," said the 74-year-old Swiss who has held the post since 1998.
He was then interrupted by applause from delegates before adding: "Thank you for your confidence. I would like to say we will go for it together. I am ready, you are ready."
Delegates also decided to keep an age limit of 23 with three over-age players permitted per team for the London 2012 Olympic football tournament.
There had been pressure from clubs to make it an under-21 competition.
But the International Olympic Committee warned that any change could affect the number of teams allowed in the event.
Barcelona and German sides Werder Bremen and Schalke all won a ruling in 2008 against being forced to released their players for the Beijing Games.
The Court of Arbitration for Sport ruled as the Olympics was not on Fifa's international calendar, the clubs were not obliged to release the players.
