Red Star headed into the December-March winter break 10 points behind Serbian champions and league leaders Partizan Belgrade. They also suffered a 20th successive early exit from European competition.
Once a force in Europe, Red Star are now a pale shadow of the side who won Europe's premier club competition before political strife in the Balkans in the 1990s and economic mismanagement at the club reduced them to also-rans.
"We need to inject fresh blood into the club at once by adding young talents from Red Star's academy," Prosinecki told reporters on Monday.
"They are the club's future and I am convinced that's the only right way of looking at things because signing players who become surplus to requirements after six months is not the best policy," he said.
"Building a team capable of giving our fans something to cheer about will take time and we can only think of domestic silverware again in a few years," he said.
"We also need to buy several quality players to add steel to a team based on youngsters but it's up to the board to decide whether we can afford them."
