Leeds chairman Peter Rids dale has warned Lee Bowyer and Jonathan Woodgate that they face serious internal discipline if they are proved to have broken the club's code of conduct.
Midfielder Bowyer (22), and England defender Woodgate (19), were arrested yesterday in connection with an assault in Leeds city centre which left a young man in hospital with serious head injuries.
After questioning the pair were released on bail pending further inquiries.
Ridsdale, who is on business in China, has been kept in touch with events as they developed and issued a statement.
"Leeds United firmly believes that all players have a personal responsibility to act in a way that befits their position within the local community," it read.
"If it is subsequently proven that this has not been in the case in individual circumstances, serious internal disciplinary action will be taken."
English FA executive director David Davies said: "We are shocked to hear these allegations. We know how seriously they are being taken by Leeds United. We have been in contact with the club this afternoon and will be monitoring developments closely.
"We echo their view that all players have a personal responsibility to act in a way that reflects their position within their community. That's true, not least of international players of whatever age."
Bowyer, a former captain of England Under-21s, was arrested at his home at Linton near Wetherby. Police also called at the home of Woodgate's parents in Middlesbrough, but the teenage star was not at home. He later arrived at a Leeds city centre police station accompanied by his solicitor.
A spokesman for West Yorkshire police confirmed that two men had been arrested in connection with the assault. A 19-year-old man, who has not been named, is in a stable condition in Leeds General Infirmary.
The arrests follow an incident early last Wednesday when a young man, who was in a group of five Asian youths, was allegedly kicked and beaten by a number of white men.
Police said the attack followed an argument outside the nearby Majestyk nightclub.
A spokesman for the West Yorkshire force said the five Asian males were being chased along Mill Hill when one of them fell over. He was then attacked by the group of white males. "At the moment we are trying to establish a motive for this assault. The victim suffered head injuries and is currently in hospital. We do not know how many white men were involved in the incident."
An eyewitness, Simon Cook, who works in the Hot Stuff kebab shop near the scene of the attack, described it as "barbaric".
He said: "An Asian guy came in the shop and screamed `there is a fight, there's a fight, ring the police'.
"We ran out and we saw a group of three or four Asian lads. One of them was on the floor and he was getting kicked by three white lads.
"We rang the ambulance and we were shouting `the police are coming, stop, stop'.
"Eventually they stopped and ran off. The lad was still on the floor. It was very, very bad, it was barbaric."
The revelations that Bowyer and Woodgate have been arrested could not have come at a worse time for the players.
Woodgate made his England debut last June against Bulgaria, and though he has since drifted out of the picture he was still likely to be considered by national coach Kevin Keegan for this summer's Euro 2000 tournament.
His partnership with Lucas Radebe at the heart of the Leeds defence has helped the club rise to the top of the Premiership, while they are in the last 16 of both the UEFA Cup and the FA Cup.
Bowyer is yet to be capped at full international level but has scored nine goals from the United midfield this season and is a regular in the England Under-21 team.