The Dutch football association's licensing commission plans to relegate FC Twente to the second tier to punish the 2010 Eredivisie champions for "repeatedly and deliberately misleading" football authorities and other clubs about their finances.
A Dutch professional players' council has two weeks to consider the proposal and issue a non-binding opinion before the decision is finalized.
Twente, who finished 13th in the Eredivisie last season, can appeal.
Crisis club FC Twente have been forced to withdraw their submission for the 2014-15 financial year after new details of the deal to sell Dusan Tadic to Southampton came to light, meaning they could be a step closer to losing their professional licence.
Director Onno Jacobs, who was appointed by the crisis-hit Erdivisie club in January after Twente were fined €42,250 and banned for misleading the Dutch federation's licensing commission over an investment deal, believes the next few days are crucial...
The Dutch football association has banned FC Twente from European competition for three years as punishment for "deliberately misleading" the body about a deal to sell player transfer fee rights to an outside investor.
The Royal Netherlands Football Association (KNVB) announced the punishment on Tuesday, adding that Twente's professional license will be revoked if they fail to fully cooperate with an independent investigation into the club's structure.