Peru will hope to have the ban lifted in time to resume their 2010 campaign
Peru have been banned from playing international football, including the 2010 World Cup, over a dispute between the government and football federation.
Fifa has also warned Peru that they have one month to settle the dispute or they could be expelled entirely.
"The Peruvian Football Federation (FPF) will only return on the basis of negotiations with the president and the board of the FPF," said a statement.
Peru do not resume their 2010 World Cup campaign until March.
They are currently bottom of the 10-nation South American qualifying group with just one win in 10 matches.
Fifa's executive committee will discuss the issue at a meeting in Tokyo on 19-20 December.
South American Football Confederation (CSF) secretary general Eduardo de Luca was reported as saying: "Fifa has suspended Peru from all activity."
The dispute began when the government of President Alan Garcia refused to recognise the election of Manuel Burga as football federation president.
The president of the Peruvian government's Institute of Sports (IPD), Arturo Woodman told Reuters: "If Burga's position is going to remain the same as before... this is a dialogue of the deaf.
"There is absolutely no intervention by the government. What there is, is respect for Peruvian law."
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