FIFA President Gianni Infantino said the decision followed extensive consultations with stakeholders and acknowledged that the proposal had created divisions that no longer served its intended purpose.

"We have always sought, and will always seek, to unite football and move the game forward. Therefore, this proposal will not be adopted," said Infantino in a statement.

The proposal, announced earlier this week, sought to increase football development funding to US$10 billion over the next four years by creating FIFA Forward Enterprise, a company that would oversee FIFA's commercial activities and major events while allowing private investment.

The plan sparked concerns that it could undermine the integrity of football competitions by placing greater emphasis on commercial interests.

Asian Football Confederation (AFC) President Sheikh Salman bin Ibrahim Al Khalifa welcomed the withdrawal of the proposal, saying the future of world football should be built on consultation, collective dialogue and respect for the sport's governance structures. He also called for greater transparency in presenting initiatives of such significance.

The Mexican Football Federation also welcomed the decision, stating that it prioritised unity among continental and national football associations in the best interests of the game.