Major League Soccer has said that Inter Miami's signing of World Cup-winning midfielder Blaise Matuidi was not in compliance with its roster and budget rules and that the club could face sanctions.

The side co-owned by David Beckham recruited Matuidi on a free transfer after he left Italian champions Juventus in August. The league said last month it would launch a formal review of the deal.

"The league has concluded that Inter Miami was not in compliance with the Roster and Budget Rules during 2020," MLS said in a statement on Friday.

It said Matuidi was categorised as a Targeted Allocation Money (TAM) player but his pay was above the limit for TAM players so he should have been classified as a Designated Player. Teams can have up to three such players.