Real Madrid's Lass Diarra (front) fights for the ball with Deportivo Coruna's Rodolfo Bodipo during their Spanish First Division soccer match at Santiago Bernabeu stadium in Madrid January 25, 2009.

MADRID, Jan. 28 (Xinhua) -- Real Madrid withdrew its appeal to force UEFA to allow them to inscribe both winter signings Jan-Klaas Huntelaar and Lassana Diarra in their squad for the knockout stage of the Champions League on Tuesday.

Both of Real Madrid's winter signings played in the European competitions with their former club's: Ajax and Portsmouth, before joining the Spanish club during the winter transfer window.

UEFA rules state that a club can only inscribe one player who has played for a different team in Europe during the same season, something Real Madrid, Director of Sport Pedja Mijatovic overlooked when both players were signed.

Real Madrid had asked UEFA to allow them to allow both players to represent them in the Champions League this season, but this had been turned down as had their appeal to the UEFA appeals committee.

The club then took their case to the Court of Arbitration for Sport, but decided to withdraw their appeal on advice from lawyers, who felt it had little chance of prospering.

Real Madrid must now decide which of their two new signings is included in their Champions League squad for when they play Liverpool in the first round of the knockout phase in February.