Malaysia have been denied hosting rights for the 67th FIFA Congress in 2017 after the FA of Malaysia (FAM) failed to guarantee visas for all its delegates at the Congress.
The decision to withdraw Malaysia as hosts is understood to have been communicated to FAM last week.
The withdrawal is a setback for FAM, who had started preparations to host one of the key events on the world football calendar.
Among the important topics scheduled to be discussed at the Congress is the bidding process for the 2026 World Cup.
In 2013, the FIFA executive committee granted Kuala Lumpur hosting rights, which would have made it only the third Asian capital city to do so after Tokyo and Seoul in 1964 and 2002.
If Malaysia, which also houses the Asian Football Confederation headquarters, hosted the event, it would have witnessed FIFA president Gianni Infantino chair the Congress.
FAM are expected to make a confirmation on the matter at its executive committee meeting on Monday.
The news comes after reports that some of the governing body's high ranking officials could be exiting their posts soon as part of a major shakeup.
The chain of events started after the Crown Prince of Johor, also known as TMJ, had alleged that he had proof of corruption within the organisation. He added that many top officials would also be resigning from their positions.
When asked for comment, FAM officials said a decision would be announced at their executive committee meeting on Monday.