Fifa president Sepp Blatter says football bodies should have the power to relegate teams if their fans commit racist acts.
Blatter, who is currently running for his fifth straight term in office, hopes the stricter punishments will act as a deterrent.
"We have to punish not only through fines and stadium closures but we have to use our rules to suspend teams, to take away their points or even to relegate them if racism continues," he said.
Fifa has announced that Football Association chairman Greg Dyke has returned the watch given to him by the Brazilian FA during the 2014 World Cup. and that the Fifa Ethics Committee has therefore closed proceedings in respect of a possible breach of the Fifa Code of Ethics.
Dyke received the £16,000 Parmigiani watch during a Fifa Congress meeting in Sao Paulo at last year's World Cup - with 65 handed out in goodie bags totalling more than £1million.
The watches were recalled, but Dyke had planned to donate it to the FA's charity partner, Breast Cancer Care, to allow them to auction it.
Fifa presidential candidate Prince Ali Bin Al Hussein has launched his manifesto as he attempts to earn football's top job.Read the full story ›
Manchester United director David Gill has been elected as Britain's FIFA vice-president.
Gill, who is also vice-chairman of the Football Association, will succeed Northern Ireland's Jim Boyce in May and will have a four-year term on FIFA's executive committee.
Uefa has announced it wants an extra place to be given to a European country at World Cup finals.
Europe currently has 13 countries among the 32 final spots but Fifa president Sepp Blatter has previously urged other continents to seek more guaranteed places.
Uefa's general secretary Gianni Infantino said not only would the 13 places be protected but that Europe would fight for an extra slot.
He told a news conference in Vienna: "If you look at it objectively based on facts 19 of the top 32 ranked associations are European, the winners of the last three World Cups were European.
"So I think it's absolutely objective and fair to be asking for one more position only - in fact we could ask for more than one. To be crowned world champions you must have the best teams in the competitions."
He added: "I don't know if Fifa is trying to reduce the number, I don't think so - I cannot imagine a World Cup with fewer than 13 (Europeans) taking place. Whatever speculations and discussions the absolute minimum is the status quo."
Sepp Blatter has delivered a warning against a boycott of the 2018 World Cup and claimed the tournament could bring peace to the regionRead the full story ›
FIFA will pay $209 million (£141 million) to clubs in compensation for releasing players to take part in the 2018 and 2022 World Cups, world soccer's ruling body said on Friday.
"A total of $209 million will be distributed among the clubs releasing players to the participating teams in the 2018 FIFA World Cup (in Russia)," FIFA said in a statement.
"The same amount has been agreed for the 22nd edition to be staged in Qatar in 2022."
On Thursday, football's world governing body confirmed the 2022 World Cup final will take place on December 18th.
Great Britain will be banned from entering football teams at the 2016 Olympics unless all home nations are in agreement, according to Fifa vice-president Jim Boyce.
Earlier this month, the English FA confirmed its plans to enter male and female teams in next year's summer games in a move that was met with furious criticism from Welsh football chief Trefor Lloyd Hughes, who said:
"If they want to work with us they have to be more open with us and they don't seem to be keeping to agreements. I'm livid about it."
And now, British Fifa vice-president Boyce has confirmed the final decision must be unanimous and ratified by football's world governing body.
Fifa has the final say on whether a football team can be entered for the Olympic Games.
I was given an absolute categorical reassurance from Fifa that unless full agreement could be reached between England, Scotland, Wales and Northern Ireland, there would be no GB team participating at next year's Olympics.
Fifa has confirmed the 2022 World Cup final in Qatar will be held on December 18, according to a spokesman.
The Executive Committee today confirmed that the 2022 FIFA World Cup™ will be staged in November/December with the final to be on 18 December 2022, Qatar’s National Day.
In principle, it was agreed that the tournament should be played over a reduced timeframe, for instance 28 days. The working group for the international match calendar will meet in due course to finalise the international match calendar for the 2019-2022 cycle.
The climax of the winter World Cup will take place a week before Christmas - a decision which will allow traditional Boxing Day club matches to take place.
Meanwhile, it is understood Fifa's executive committee in Zurich has chosen France to host the 2019 women's World Cup over South Korea.
Sepp Blatter has rejected an invitation to take part in a live television debate involving all four candidates ahead of this year's Fifa presidency election.
The other three candidates - Fifa vice-president Prince Ali Bin Al Hussein of Jordan, Dutch FA president Michael van Praag and former Portugal international Luis Figo - had all agreed to take part in the debate but current Fifa president Blatter has refused to do so.
The debate was a joint BBC and Sky initiative and Football Association chairman Greg Dyke had offered to host it at Wembley. Blatter's refusal means it will not now take place.
Blatter did not even respond in writing, instead choosing to communicate his decision verbally through a Fifa official.