The deal, in which FIFA had aimed to raise up to $US4.2 billion ($A6 billion) by selling a roughly 20 per cent stake in the group, valuing the new arm at $US20 billion ($A28.4 billion), is no longer active.

The proposal, first announced in midweek, was strongly opposed by European football's governing body, UEFA, which threatened a boycott of all FIFA events, including the FIFA World Cup, and accused FIFA of putting the sport's "soul" up for sale.

"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," Infantino said via a statement released on Saturday (AEST).

"Our purpose has always been - and will always be - to unite and improve. As a result, this proposal will not proceed."

"Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support."

Earlier on another dramatic day of this crisis, Infantino's senior adviser Carlos Cordeiro resigned with immediate effect, calling the plan "a bad deal for football".

FIFA's chief operating officer Kevin Lamour also claimed FIFA's own staff were "deceived" by Infantino, describing the proposal as a "project of one person".

Opposition to the plan snowballed during the week.

On Friday (AEST), UEFA's 55 member nations voted unanimously to boycott all FIFA tournaments until the proposal was withdrawn, saying that the FIFA World Cup "cannot be treated as an investment product".

CONCACAF, the 41-member federation for North America, Central America and the Caribbean, rejected the proposal during a meeting on the same day.

The Asian Football Confederation, which has 47 members, issued a statement saying it "stands in solidarity" with UEFA and CONCACAF.

UEFA, CONCACAF and the AFC combined have 143 national associations, more than half of FIFA's 211 members. A majority of the members would have needed to vote in support of the plan for it to proceed.

Infantino, 56, is up for re-election next year. North American football chief Victor Montagliani is reportedly looking to challenge him.

British Prime Minister Andy Burnham also told reporters that Infantino was "the wrong man to lead the organisation".

FIFA had proposed creating a $US20 billion ($A28.5 billion) subsidiary, FIFA Forward Enterprise (FFE), to run the FIFA World Cup and its other events.

Thrive Eternal, a fund run by Thrive Capital, founded by Joshua Kushner, had been slated to lead the proposed investor group, according to FIFA.

Joshua is the brother of Jared Kushner, US President Donald Trump's son-in-law.

Trump and Infantino have developed a close relationship, with the US co-hosting the recent 2026 FIFA World Cup.

However, Trump claimed he had not spoken with Infantino about the external investment plan.