Fifa israel suspension
Palestinian Football Association's Jibril Rajoub raises a red card as he addresses the Fifa Congress in Zurich Reuters

Palestine has officially withdrawn its request to suspend Israel from Fifa.

The decision came after a compromise between the two parties was presented at the Fifa congress in Zurich, where embattled president Sepp Blatter is expected to defeat challenger Prince Ali Bin al-Hussein and secure a fifth term in office despite a corruption scandal engulfing the organisation.

Commenting on the dropped motion, Palestinian Football Association head Jibril Rajoub said: "I look forward to the day in which Palestinians, like many others, are enjoying the benefits of the game."

Israel FA president Ofer Eini replied: "I don't want to point any fingers at the Palestinian side. Let's leave it to the politicians to do politics."

Then, he invited his Palestinian counterpart to join forces and work together. "I want us to cooperate, hug and embrace each other, the differences – if we have any – we should be able to resolve by listening to each other.

"I call upon you to join me on the stage and shake my hand," he said to Rajoub.

The two shook hands after a new Palestinian proposal was approved.

The Palestinians introduced an amended version of the proposal that drops the demand for barring Israel from Fifa but includes freedom of movement for Palestinian football players, steps against West Bank-based Israeli teams and an investigation into Israeli racism.

Earlier, the Palestinian Football Association said it would push for a vote to suspend Israel from Fifa unless it expelled five teams based in illegal Israeli settlements in the occupied West Bank from the country's football league.

The Palestinians also complained about their treatment by Israeli police and their restricted movements at army checkpoints limiting their passage in and out of the occupied territories, which prevents many players from attending games. The Gaza crossing, in particular, is strictly controlled by Israeli authorities.

The Israeli delegation in Zurich met Fifa officials to offer concessions that could postpone the vote.

A Haaretz source said Israel offered four major concessions in its proposal: granting Palestinian players and coaches special documents to ease travel from Gaza to the West Bank and abroad; easing restrictions by Israel and promoting soccer-related projects in the West Bank; covering the costs of tax and customs for sports equipment imported by Palestine to the West Bank through Israel; and forming a joint committee comprised of Israeli, Palestinian and Fifa authorities to meet monthly and discuss any issues that come up.

While Blatter seemed open to Israel's proposal, he said he would need Rajoub's approval before cancelling the vote on the issue on Friday (29 May).