The British Olympic Association (BOA) believes choosing an all English team to play at the London 2012 games then players that were not selected may press for legal action. Last year the Football Associations of England, Northern Ireland, Wales, and Scotland agreed that Great Britain would be represented by only English players.
Home nations are worried that by sending a combined team to the Olympics they would compromise their status as individual teams with Fifa.
However, although the four countries signed the deal the BOA is worried that players should be chosen based on their merit due to the potential for legal problems.
Chairman of the BOA, Lord Moynihan, warned that if only England players are selected legal challenges could ensue.
The BOA and the Football Association will meet at the beginning of next year to figure out a solution to the problem but given that many of the home nations refuse to back down it may not be quite so simple to find a compromise that everyone can agree on.
A spokesperson for the Scottish FA stated that while they are aware of the comments made by Lord Moynihn, they have not changed their position that only England players should be sent to the Olympics. He added that the Irish GA, Scottish FA, and the FA of Wales have already made the agreement to play under the moniker Team GB.