The European Union agreed to take action to try to limit the number of foreign players in club squads at a meeting with FIFA and UEFA officials in Portugal yesterday.

Concern has grown over the unrestricted availability of EU players since the 1995 Bosman ruling, which forced sports to adhere to the Treaty of Rome's provision on freedom of movement within EU member states.

The EU officials heard how the strict rules had distorted the transfer market and stunted the development of home-grown talent.

Though the EU has previously insisted that football cannot be made a special case, the officials agreed to set up a working group to look at the problem. Its findings will be reported by May 10th.

The Premier League reacted cautiously to the EU's softened stance. "We support the need to protect the development of English talent," said its spokesman Mike Lee. "But changing the basis of European law would be a long and complicated process, and may not have the positive effects some people are suggesting. We would have to look at the specific proposals."

UEFA has partially exonerated Chelsea's fans for their part in crowd trouble at the Champions League game in Marseille last month, during which they were sprayed with tear-gas by French police. UEFA yesterday fined Marseille £40,000 for their supporters' behaviour in starting the trouble. Chelsea were fined £8,000.