The decision was taken after an emergency meeting of Fifa's executive committee in Zurich.

The investigating committee will be set up to look into the state of Fifa's finances and the handling of the collapse of former marketing partners ISL.

It may also look into allegations that supporters of Blatter paid cash for votes before his 1998 election.

Britain's Fifa representative David Will is expected to be appointed to the committee.

BBC Sports News correspondent Gordon Farquhar said the move was a "significant victory" for Blatter's critics.

"Full details about the committee will be given on Saturday."

The move is a major blow for Blatter, who resisted the creation of such a committee.

He only agreed to the emergency meeting under pressure from the majority of the 24-strong executive.

Now the next battle will be over the make-up of the committee - whether the majority are supporters of the president, opponents or are independent.

Bankruptcy

Lennart Johansson, Uefa president and a Fifa vice-president, has been one of Blatter's fiercest critics.

He emerged from the meeting and would say only: "It was a good meeting. I am satisfied."

The bankruptcy of ISL, a subsidiary of the International Sports Media and Marketing group, which negotiated Fifa's television and sponsorship deals, led to the cancellation of last year's World Club Championship in Spain and forced Fifa to set up its own in-house marketing unit.

Blatter insists the collapse cost Fifa around �22m.

But there have been claims the true damage could be as much as 10 times that.

Before the meeting, Blatter had gone on the offensive.

Finance committee chairman Julio Grondona explained the decision in a statement on Fifa's website.

"I am satisfied that the committee passed all its decisions unanimously and corroborated all the information provided by Fifa since the opening of bankruptcy proceedings against ISL," he said.

"Fifa's finances are very sound and, with provisions of 367m Swiss francs assured at the end of 2001, it is certain that we will amply cover all current and future risks and any other unexpected expenses."