Real Madrid and Atletico Madrid have been banned from registering players between next two transfer windows.
The next two transfer windows are July/August 2016 and January 2017.
Both Spanish clubs are being punished by FIFA’s disciplinary committee for breaching regulations governing the transfer of players under the age of 18.
A FIFA statement read: “The two clubs were found to have violated several provisions concerning the international transfer and first registration of minor players as well as other relevant provisions with regard to the registration and participation of certain players in competitions.”
Atletico immediately released a statement vowing to appeal the ban.
The statement said “Our club is not in agreement with the sanction from international football’s governing body and will study all the documentation we’ve received to present an appeal against the sanction.”
The ban does not cover the current January transfer window, but neither club will be able to bring in new signings in the summer or next January.
Following the suit, Atletico were fined 900,000 Swiss francs, while Real were told to pay 360,000 Swiss francs.
Barcelona were given a similar ban in April 2014 for also breaching rules on the transfer of under-18 players, with Spanish football expert Guillem Balague, saying that both Real Madrid and Atletico Madrid are confident the bans will be upheld in the same way Barcelona managed to do.