FIFA president Gianni Infantino believes the Bundesliga players who protested about the death of George Floyd on the pitch last weekend "deserve an applause and not a punishment".
England and Borussia Dortmund forward Jadon Sancho was booked after lifting his match shirt to reveal a 'Justice For George Floyd' message on a T-shirt underneath.
It has been reported the German Football Association (DFB) is considering disciplinary action against Sancho, as well as a couple of others, for a technical breach of the game's laws.
Under Law 4 Section 5, players are not supposed to have slogans, statements or images on their kit or other equipment which could be deemed as political.
However, FIFA has urged governing bodies applying those laws to "use common sense and have in consideration the context surrounding the events".
Infantino said: "For the avoidance of doubt, in a FIFA competition the recent demonstrations of players in Bundesliga matches would deserve an applause and not a punishment.
"We all must say no to racism and any form of discrimination. We all must say no to violence. Any form of violence."
The death of George Floyd, killed when a white police officer held him down by pressing a knee into his neck in Minneapolis last week, has provoked demonstrations and condemnation in the United States and the wider world.
Former Manchester City defender Nedum Onuoha, now based in Utah with Real Salt Lake in Major League Soccer, revealed he does not feel "100 per cent safe" in the US.
"I am always very wary of how I behave and how it could be viewed by people who have power," Onuoha told BBC Radio 5 Live. "I have loved living in this country but there is (another) side of it.
"I never go out and feel 100 per cent safe."
Footballers in England are unlikely to face any disciplinary action for taking the knee or other peaceful anti-discrimination protests if matches are able to resume this month.
The Football Association said in a statement: "The FA strongly condemns discrimination of any kind and has endeavoured to ensure that football in England is both diverse and inclusive in recent years.
"Where any behaviours or gestures on the pitch that may constitute a breach of the Laws of the Game have to be assessed, they would be reviewed on a case by case basis with a common sense approach and understanding of their context.
"The power of football can break down barriers across communities and we remain deeply committed to removing all forms of discrimination from across the game we all love."
It is understood that taking the knee in the manner in which Borussia Monchengladbach forward Marcus Thuram did would be unlikely to attract any sort of sanction.
But taking the knee in a way which could be viewed as provocative, perhaps doing so deliberately in front of someone who has previously been charged with or found guilty of a racism-related offence, may warrant further action.