North Belfast MP Nigel Dodds was speaking at Westminster as MPs debated the issue of governance in football.
The DUP Deputy leader said "action needs to be taken to stop the haemorrhaging of talent from Northern Ireland".
He said there needed to a "higher discussion about this".
The British and Irish governments should get together to address an "injustice", he added.
He also called on Uefa and Fifa to re-examine the issue which he claimed uniquely affected Northern Ireland.
A ruling by football's governing body Fifa allows players from the island of Ireland to choose which national side they represent providing they have not played for the other in a competitive senior international.
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Speaking in Westminster to the BBC, Mr Dodds, who takes an interest in football matters as a long-suffering Everton fan, said the ruling needs to be overturned.
He said "the real problem is that the Northern Ireland team will suffer badly if this rule remains in place".
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Last month, the new Northern Ireland manager Michael O'Neill spoke about the issue.
He said: "A lot of these lads have played their youth football in Northern Ireland, they have played representative for Northern Ireland at under age level."
The former Shamrock Rovers boss added: "It is important we look after these players and mentor them so they see the benefit of having a long and distinguished career with Northern Ireland as opposed to possibly being on the fringes of the Republic of Ireland squad."
Last year, in a BBC Radio Ulster documentary entitled 'Does the Cap Fit' Northern Ireland football legend Gerry Armstrong claimed there was evidence that teenage players from north of the border were being approached to play for the Republic of Ireland.
Mr Armstrong said players as young as 15 were being approached. The Football Association of Ireland said it was not involved.
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