Along with Scotland and Northern Ireland, the Football Association of Wales (FAW) have agreed to let Britain compete in the Games only on condition that they have nothing to do with it because they fear that it could jeopardise their independence to compete in events like the World Cup and European Championships.

The FAW have threatened any players, such as Arsenal full-back Aaron Ramsey and Wolverhampton Wanderers goalkeeper Wayne Hennessey, that if they choose to play for the team then they could be banned.

An agreement has been reached between the four Home Countries that an all-England team will represent Britain in 2012.

Blatter said: "That is absurd.

“As a footballer, I would say it is a nonsense to forbid a player to be in a so-called British team."

The situation could be even further complicated if Cardiff City are promoted to the Premiership from Championship, a League they currently lie third in, just a point off an automatic promotion place.

They are investigating the possibility of leaving the FAW and becoming members of the Football Association to ensure that they could compete in the Champions League or UEFA Europa League if they qualify.

Blatter warned that could have serious repercussions for the FAW, including potentially leading to questions from other national associations as to why Wales and the three other Home Countries are allowed to compete independently when they all under the jurisdiction of the United Kingdom.

He said:  "If a club wants to move from one association to the other that would need the permission of the FIFA Executive Committee.
 
“That would be the case if Cardiff City want to play under the English FA.
 

“But for me the four British associations must try to solve whatever problems they have amongst themselves.
 

“They should not bring this to the international tribunal because people will again begin to ask why they have such privileges.”

Blatter, though, claimed he did not support any of the four Home Country associations losing their independence.

He said: “As President, I can tell you there will be no change and the privileges afforded in 1946 to the four Home British nations shall be maintained."