UEFA president Lennart Johannson has warned Portugal it could lose the 2004 European Championships if squabbles over the funding of new stadiums are not solved shortly.
"We cannot wait much longer, if things continue as they are we will have to take action," the European football boss said while attending a FIFA meeting in Tokyo.
"There is no shortage of countries that are interested in organising the 2004 European Championships and we can change at any time. I hope this will not be necessary," he said.
Portugal beat off competition from the favourites Spain and a joint bid from Hungary and Austria for the right to host the event. The country, which has never staged a major championship before, committed itself to building or renovating 10 stadiums to be used for Euro 2004.
UEFA credited Portugal's detailed plans for the development of its stadiums for its decision to award the championship to the country.
But in recent weeks newly elected mayors in Lisbon and Porto, Portugal's second largest city, have contested financial commitments made by their predecessors relating to the construction of infrastructure for the new stadiums.
The UEFA chairman of the Stadia Committee, Ernie Walker, said on Wednesday the conflict between FC Porto and the mayor of Porto over the financing of the infrastructure surrounding a proposed new stadium could turn into "an international scandal".