Football's world governing body, Fifa, has suspended El Salvador from all international competition.
Fifa accused the Salvadoran government of interfering in the game by refusing to recognise local football officials it had appointed.
If the dispute is not resolved, three El Salvadoran referees will not be able to take part in the World Cup finals in South Africa in June.
The El Salvador team did not qualify for the competition.
Last year Fifa assigned a special commission to reform the finances of El Salvador's football federation, Fesfut, after the resignation of its head, Rodrigo Calvo.
But the new left-wing government of President Mauricio Funes has refused to recognise the commission.
Fifa says it considers this to be political interference in the game.
It says the suspension could be finalised at a meeting of its executive committee and congress on 8 June if the Salvadoran government does not change its position.