World football's governing body, FIFA, has scrapped its controversial plan to sell a stake in the World Cup to private investors following widespread backlash from member associations.

The proposal aimed to raise $US4.2 billion (approximately AUD 5.9 billion) by selling about a 20 percent stake in a new unit managing FIFA events, valuing it at $US20 billion. However, European football's governing body, UEFA, led the opposition, accusing FIFA of putting the sport's "soul" up for sale. On Thursday, UEFA's 55 member nations voted unanimously to boycott all FIFA tournaments, less than two weeks after Spain won the World Cup.

FIFA President Gianni Infantino said in a statement on Friday, "Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place."

FIFA confirmed it will not proceed with the proposal after fierce resistance from some member associations. Infantino, born in Switzerland to Italian parents, was already under pressure due to his perceived relationship with United States President Donald Trump during the 2026 World Cup. The Asian Football Confederation (AFC), previously a key ally, also opposed the plan and recommended FIFA urgently review its management style.

Sources