Insurance firm Axa are to scrap their agreement covering FIFA for next year's World Cup in Japan and South Korea as a result of the September 11th terrorist attacks and subsequent bombing of Afghanistan.
The entire package was worth £617million in cover but Axa, fearful of the current uncertain international situation, have given notice to football's world governing body that they want to terminate the current agreement and renegotiate.
A statement from FIFA confirmed Axa's move, which has left president Sepp Blatter seething.
FIFA have already paid more than half of the £12million being charged in insurance premiums.
The statement read: "As a result of the current uncertain international climate, insurance company Axa have given notice to terminate its insurance cover for the 2002 FIFA World Cup ... while also announcing that it will co-operate with FIFA to find a joint solution by the end of the month-long term of notice.
"While acknowledging this situation, FIFA has emphasised that it has in no way reneged on any contractual obligations and all payments of insurance premiums due thus far (£7.2 million out of a total of £12.07million) have been effected on time.
"The world football governing body together with its insurance partners will now search for alternatives, while at the same time investigating the legal implications of this situation."
FIFA insisted next year's tournament was in no danger, and pointed out that less than two weeks ago Axa had stated there were no problems with the cover.
The statement added: "As recently as October 2nd, 2001, Axa had reaffirmed the validity of the insurance cover, in which the entire cancellation insurance package amounts to approximately £617million.
"The staging of the 2002 FIFA World Cup in Korea and Japan is in no way endangered by this development."
Axa are a French-based multi-national insurance firm and sponsor the English FA Cup. The FIFA deal was negotiated through their organisation in Germany.
Hearts' head coach Craig Levein is set to start new signing Alan Maybury against St Johnstone today after he completed his £150,000 move from Leeds United.
The Republic of Ireland international will fill the right-back berth in the game to the delight of Levein.
Levein said: "I have been looking for a good right-back for a year and Alan is an extremely good player.
"The last couple of games have not been too disappointing with the way we have played but the results haven't been the best.
"In terms of Maybury and getting players in, it is the age old problem that you have to get better players than you already have, and get value for money.
"I feel we have done that in this case."
Meanwhile, Maybury insisted that the advice of a former Scotland international had convinced him to move to Tynecastle. Maybury said: "There were a few clubs who wanted me on loan but Leeds assistant manager Eddie Gray talked to me about Hearts.
West Ham United goalkeeper Craig Forrest (34) was recovering at home yesterday after undergoing surgery for suspected testicular cancer.
The Canadian international is due to have further tests next week, but told national team officials that the operation was successful in removing the lump.
"The next stage is to have tests and a scan, hopefully early next week, to find out if it has spread to other areas, said Forrest, who lives in Ipswich.
"I am very confident and optimistic it will be okay, though it is possible that even if the scan comes up negative I will still have to have some treatment as a precaution."