The decision came after Zimbabwe were persuaded to pull out of the event.

The International Cricket Council (ICC) has been discussing Zimbabwe's future at a board meeting in Dubai after England and South Africa broke off cricketing relations last week in protest at the re-election as President last week of Robert Mugabe in what they allege were undemocratic elections.

But the sport's governing body has decided Zimbabwe will not be suspended from international cricket.

The ICC's compromise decision should end any doubts about England hosting next year's World Twenty20 tournament.

Zimbabwe Cricket Union president Peter Chingoka said his country had voluntarily pulled out of the event.

He said: "Zimbabwe has agreed not to participate in the Twenty20 World Championships in the wider interest of cricket.

"But we will continue to be a full member of the ICC and welcome any team that wants to play against us.

"We voluntarily agreed to back out of the Twenty20 Worlds because we were told we won't get visas to England.

"We don't want to gate crash where we are not welcome."

But Secretary of State for Culture, Media and Sport Andy Burnham said he would have liked to have seen tougher action against Zimbabwe.

He said: "I welcome the fact that Zimbabwe will not play in the WorldTwenty20 in England next year," he said.

"The Government made it clear that, in the current circumstances, the team whose figurehead is Mr Mugabe would not be welcome.

"While I would have preferred the ICC to take a stronger stance against Zimbabwe cricket, this solution still allows individual cricket authorities to make their own choices over whether to play Zimbabwe."

The England and Wales Cricket Board (ECB) stated last week it will not host a tour by Zimbabwe next year because of the close links between Zimbabwe Cricket and the regime of Mugabe.

There had been calls for the ICC to remove the African country's full member status during a series of executive meetings this week.

That would have been a controversial move and would have required at least seven of the 10 full member countries to agree.

That appeared unlikely with Zimbabwe gaining support from the sub-continent, with India, Pakistan and Sri Lanka backing the African nation.

Although the ICC would not take punitive action against the ECB for preventing Zimbabwe touring in the light of a formal government instruction, refusal to allow a full member to take part in the World Twenty20 could have resulted in the tournament being moved elsewhere.

Such a move would have been a huge financial blow to the ECB, with huge crowds expected at the three grounds chosen to host matches.

The tournament schedule has already been published and tickets went on sale on Monday.

ECB chairman Giles Clarke said he was satisfied with the outcome of the meeting in Dubai.

Clarke said: "This matter led to a complex and lengthy series of negotiations."

"We've had long discussions with our colleagues on the ICC over the last three days and we're grateful they saw the point of view we held."

The International Olympic Committee, however, have no plans to suspend Zimbabwe and, under the terms of the Host City Contract that the Government agreed to when London was awarded the Games three years ago, they will be allowed to compete in 2012 and Mugabe will also be allowed to attend.