|ESPNsoccernet: UEFA Champions League|
Real Madrid have dropped their appeal to register new signings Klaas Jan Huntelaar and Lassana Diarra for the Champions League, the Court of Arbitration for Sport (CAS) announced on Tuesday.
Real launched the appeal to CAS after twice failing to convince European soccer's governing body UEFA that both players should be eligible to take part in the competition when it resumes next month.
Real bought the players in January without realising that they could not play two players who had earlier played in the UEFA Cup in this season's Champions League.
Real have to announce the player chosen as soon as the January transfer window is closed.
Champions League regulations dictate that clubs can register up to three new players for the knockout stage but only one who has already played this season in Europe with his previous club.
Netherlands striker Huntelaar and France midfielder Diarra have already played in the UEFA Cup this season for Ajax Amsterdam and Portsmouth respectively.
Real will play Liverpool in the last 16 of the Champions League, with home and away legs on Feb. 25 and March 10.