His stance comes after last season's Malaysia Super League (MSL) and Malaysia Cup runners-up failed to register two foreign players - Francis Forkey Doe and Erison Da Silva Santos Carniet - in time for the new MSL campaign, with the club claiming that confusing Football Association of Malaysia (FAM) guidelines regarding registration dates for the league and the AFC Cup are to blame.
Terengganu Menteri Besar Datuk Seri Ahmad Said issued the ultimatum on Wednesday, claiming he was disappointed with the FAM and may also seek legal redress to resolve the issue.
Under new FAM rules, Super League sides can register two foreign players to play domestically and are able to sign up to two others who are restricted to playing in the AFC Cup.
"If the issue is not settled, there is a big possibility that both teams from Terengganu will withdraw from the M-League competition," he explained.
"If the FAM wants to ban us for 10 years, that is their problem. But it is due to lack of professionalism on their part."
Ahmad remains adamant that the FAM must allow Terengganu, who will be joined in this season's AFC Cup by Kelantan, to use both the foreign players who were signed after receiving a circular from the governing body, and compensate the association given it invested heavily when acquiring the players.
"If the FAM fail to fulfill both our request, Terengganu will not hesitate to take legal action against the FAM, based on its circular dated December 23, with regard to the registration of foreign players," he explained.
"I was shown the letter from the FAM before we decided to sign both the players.
"The letter stated that Terengganu must name a maximum of two foreign players to play in the 2012 M-League season and changes can only be made during the April registration window. In paragraph 4.22 of the letter, it stated the names of the foreign players must be registered before or by 12 noon on January 6 for Kelantan and for Terengganu before 12 noon on January 9.
"They (the FAM) did not mention that the players to be signed are to play in the AFC Cup but M-League," he said.
Ahmad said based on the letter, Terengganu signed the duo in question, but that the FAM refused to allow either player to participate in the Super League.
"I want to ask FAM, what was the purpose of allowing foreign players to return to the M-League? I believe it was to raise the standard of the league, players and attract more fans to the stadiums.
"But if the FAM refuses to allow foreign players to see action it is our loss. What will be FAM's loss by allowing foreign players to play? Right now FAM must issue a letter, admitting their fault and accept their mistake," he concluded.