Blatter told FIFA's Congress on Wednesday that managers could be given two challenges per match.
The 78-year-old’s proposal came as a surprise in light of his previously-stated support for match officials as well as his resistance to the use of technology.
Blatter previously back-tracked on his opposition to the use of goal-line technology following Frank Lampard’s disallowed goal for England against Germany at the 2010 World Cup.
But the Swiss told FIFA’s Congress: "I think it's good to put the game and the control of the game in question."
Speaking at a news conference after the Congress, Blatter revealed he devised the proposal after speaking to a number of key stakeholders in football.
"I spoke with former footballers and coaches and I think it is an idea and we have the possibility now with the new organisation of IFAB (International Football Association Board) where we will have a technical panel and a football panel and it will be a good discussion.
"When you are looking at so many matches on the TV, and we have 34 cameras here and it is so evident what has happened I think it is a good idea.
"If it is feasible we will see but when I have an idea I generally try to bring it."
Former Premier League referee Dermot Gallagher is astonished by Blatter’s proposals and believes the system would be open to abuse if implemented.
“It’s such a contradiction in view of what he has stood for, for so long it’s unbelievable,” Gallagher told Sky Sports News.
“He was so resistant to goal-line technology, because he said it was a one size fits all approach because you can’t have professional teams playing one way and other teams playing another.
“Everything was resisted including challenges to red cards and suddenly out of nowhere comes this idea which I don’t think many referees will be too keen on to be honest.
“Why he has come out with this I really don’t know because he’s also stood firm on not allowing people to challenge referees, not allowing the referee to be undermined on the pitch.
“Refereeing-wise it’s not an idea I would be happy with if I was still active. I can’t see senior referees in the Premier League wanting that. I can’t see the point in it, I can’t see what it will achieve, I can’t see it being for the betterment of the game.
“It’s something I’ve heard many times from different people at different times but for me it’s just a bizarre idea because it can be used as a tactic by managers to slow the game down, a chance for him to regroup his players and such like.
“I just think it will open a can of worms.”
If you think this is a good idea, then you too are a f***** idiot like Blatter. A much better idea is retrospective bans and points deductions for teams caught cheating and diving.- oneloveunited