Sport Ireland is to suspend and withhold future funding to the Football Association of Ireland (FAI).
The decision was taken at a meeting of the board earlier today.
It said this was taken after the FAI admitted it broke State finding rules over a €100,000 loan former CEO John Delaney gave the organisation out of his own pocket in April 2017.
The admission was made in an opening statement, which'll be delivered by FAI President Donal Conway at the Oireachtas Sport Committee tomorrow.
The Board of Sport Ireland noted that the FAI has already been paid 50% of this year's funding to date.
It also said the decision will be reviewed as a standing item at each of its future meetings.
"The Board of Sport Ireland will consider the reinstatement of funding once all ongoing reports commissioned by the FAI have been completed and the recommendations adopted, and the Board of Sport Ireland is satisfied that all necessary processes and controls are in place to ensure the FAI’s ongoing compliance with the Terms and Conditions of Grant Approval".
In a response, FAI President Donal Conway said: "It is unfortunate that Sport Ireland now feel compelled to take this action in the wake of recent events.
The €2.7m funding Sport Ireland provides annually to the FAI is crucial to the development of an inclusive approach to football in Ireland.
"As indicated at its meeting with Sport Ireland last Friday and in recent correspondence, the association is keen to restore trust and confidence and rebuild the relationship with Sport Ireland as soon as possible."
"I am fully confident that through the processes now in place, we will be in a position to satisfy Sport Ireland in relation to both governance and financial issues and ensure that the 50% balance of funding due for 2019 is restored at the appropriate time."