FA Premiership: Football clubs across Europe could face caps on players' wages and limits on the number of foreign players they can field. The recommendations were made yesterday in a review of European football, initiated by the British government and Uefa, which delivered a devastating critique of the state of the game.

The report won the cautious support of British sports minister Richard Caborn, who said it represented the "right direction of travel" although more work needed to be done over the next six months.

Jose Luis Arnaut, the former Portuguese sports minister and the report's author, said football was not in good health and "only the direct involvement of political leaders" could help put it back on the road to recovery. "Clubs are increasingly involved in some sort of 'arms race' in relation to spending on players' salaries," he said. The report recommends "the establishment of an effective salary cap system in Europe", which could hit clubs like Chelsea who are reportedly paying Michael Ballack £130,000 a week.

Other key recommendations in the report include: - An obligation on all clubs to have a certain number of home-grown players in their squads - A crackdown on the activities of agents, with an insistence on transparency in transactions, an effective disciplinary system and no "dual representation" payments - A legal obligation on clubs to release players for international team duty, without an entitlement to compensation - Introduction of a "fit and proper person" test for those running football clubs.

The Premier League, which has been fearful of an additional layer of Brussels-imposed regulation, was studying the report last night. Uefa said it was not giving an immediate response before officials had studied it more closely.

New Arsenal midfielder Tomas Rosicky is in no doubt he has joined a club going places. The 25-year-old Czech Republic international yesterday completed the formalities on his transfer to north London in a deal understood to be worth around £7million from Borussia Dortmund.

Rosicky had been allowed to leave the Czech World Cup training camp in Austria to finalise the transfer, turning down the chance to joining Atletico Madrid. "Why Arsenal? Because I think they are the best club in Europe," he declared.

Dirk Kuyt has reiterated his desire to leave Feyenoord for the Premiership and, having already expressed his willingness to join Newcastle United, has now urged Liverpool to revive their long-standing interest in signing him.

The 25-year-old was persuaded against moving to an England club last summer not least by the Holland coach, Marco van Basten, who was anxious that the international striker remain something of an unknown quantity ahead of the World Cup finals.

However, after another successful season in the Dutch league brought 22 goals - he has scored 71 in 101 league games for the club - the player is keen to move on.

Newcastle made an approach to Feyenoord in the last month as they search for a replacement for Alan Shearer, who retired at the end of the season.

"He is certainly one of several players we are looking at and I am looking forward to seeing him in Germany," said the newly appointed full-time Newcastle manager Glenn Roeder.

Ajax are confident of signing Edgar Davids from Tottenham Hotspur this summer. Their new head coach Henk ten Cate, who worked with the midfielder during a spell at Barcelona, has spoken to Davids about returning to Amsterdam.

"I have good hope that Edgar will come back to Ajax," he said. "I have talked to him on the phone and it sounded quite positive. It will be a matter of money."

Tottenham, meanwhile, have joined the race to sign the Ivory Coast international midfielder Didier Zokora, according to the player's agent. Zokora is almost certain to leave St Etienne in the summer and Arsenal and Manchester United are already monitoring his situation.

The player's agent Franck Belhassen said: "There is interest from a number of clubs in Didier and Tottenham are one of them. At the moment he is away with the Ivory Coast preparing for the World Cup and we will wait until after that before deciding his future.

One transfer Spurs are expected to complete in the next 24 hours is the capture of the Wigan Athletic right-back Pascal Chimbonda. They have already had two bids rejected but are set to return with an improved offer.

The former France international Roger Boli, now a partner of Chimbonda's agent Willie McKay, believes the defender should not be castigated for his decision to move on having stunned his manager Paul Jewell by handing him a written transfer request moments after their final game of the season at Arsenal.