Criminal proceedings have been opened over the allocation of the 2018 and 2022 football World Cups to Russia and Qatar, plunging FIFA into unprecedented turmoil on a day of sensational developments.
The revelation came just hours after seven high-ranking FIFA executives were arrested this morning during a dramatic dawn raid at a five-star hotel in Switzerland over allegations of bribery totalling more than £60million over the past 25 years.
The timing of the arrests was explosive, coming just two days before the FIFA presidential election, which has already been dogged by controversy and claims of corruption.
Switzerland's Office of the Attorney General later said it was investigating unidentified individuals on suspicion of criminal mismanagement and of money-laundering in connection with FIFA's decision to award the 2018 and 2022 tournaments to Russia and Qatar respectively.
It said officials had also seized data and documents stored in IT systems at FIFA's headquarters in Zurich.
Swiss police said they will question 10 FIFA executive committee members who took part in the World Cup votes in December 2010.
Earlier, more than a dozen plain-clothed Swiss police officers arrived unannounced at the Baur au Lac hotel in Zurich at around 6am before storming the rooms where senior officials from the world football's governing body were staying.
Members from the executive committee were then led away by police through the side exit of the hotel, with many using bedsheets to shield themselves from the public eye.
Sepp Blatter, who is widely expected to win a fifth term at the helm, is now actively lobbying for a postponement of Friday's presidential ballot, according to FIFA insiders, although this is expected to be opposed by his one and only opponent, Prince Ali Bin al Hussein of Jordan.
FIFA spokesman Walter de Gregorio told a hastily convened news conference in Zurich that the presidential election will take place as planned.
Mr De Gregorio also ruled out any revote for the 2018 and 2022 World Cups won by Russia and Qatar.
The most significant arrest was that of Jeffrey Webb, the vice president of the executive committee, who has previously been hailed by Blatter as a potential successor.
Among the other FIFA members arrested in the dawn raid were Eugenio Figueredo, the Uruguayan football executive who was due to stand down from the world governing body after Friday's election.
Other officials held by Swiss police include Eduardio Li, President of the Costa Rica Football Association, and Rafael Esquivel, President of the Venezuelan Football Federation since 1988.
Former vice-president Jack Warner was also arrested in relation to corruption in the bidding process for the 2022 Qatar World Cup.
Although Swiss authorities said seven officials had been arrested, the New York Times reported that 14 officials had been charged on the U.S indictment.