THE European Commission says there is no chance of a gentleman's agreement to allow Europe's football powers to ignore a recent court ruling on nationality of players.

Padraig Flynn, the EU employment commissioner, said he had told UEFA officials they must allow total freedom of movement for European nationals and end fees for out of contract players.

Flynn said UEFA had accepted the European Court of Justice's ruling of December 15th in a case brought by Belgian footballer Jean Marc Bosman, but that "the problem was one of different interpretation".

UEFA has been pressing to continue applying its `three plus two' rule - which limits teams to fielding a maximum of three foreign players and two `assimilated players' in European competitions until the end of the season.

But Flynn said that would clearly violate the Bosman ruling.

EU competition commissioner Karel Van Miert repeated threat to impose fines on FA if it did not comply with the Bosman ruling. Van Miert offered to work with the group to try to come up with a scheme to replace the existing transfer fee system.

One transfer scheme being considered by UEFA is a "farm system" whereby bigger clubs would sponsor smaller ones, and up and coming players could work their way through the ranks.

Although the Bosman ruling addressed only transfers between clubs in different European Union countries, Van Miert said the question would have to be addressed for players moving within countries as well.

. Italy coach Arrigo Sacchi has had his contract extended until the end of 1998, ensuring that he will be at the helm during the next World Cup.

The contract, worth $1.08 million a year, had been due to expire on June 30th 1998.