"The biggest problem we've had in recent days here in this continent is racism, discrimination. This is unacceptable," Blatter said.
"We must deduct points, relegate a team. The moment we have the courage to do that discrimination will end," he told presidents of South American football confederations and other officials at the start of CONMEBOL's Congress at its Paraguayan headquarters.
The most recent case in South America involved Panama striker Luis Tejada of Peruvian side Juan Aurich when the player walked off during a match after being racially insulted by fans of Cienciano.
(Reporting by Daniela Desantis, writing by Rex Gowar, editing by Tony Jimenez)
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