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BRUSSELS, Belgium - Poland's suspended football federation reached a last-minute deal with the government on Monday that will allow it to avoid a suspension by FIFA and retain hosting rights to the 2012 European Championship.

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THE ASSOCIATED PRESS/Themba Hadebe/ file

FIFA President Sepp Blatter.

"There is an agreement between the government and the football federation," FIFA president Sepp Blatter told The Associated Press in Brussels, Belgium.

"If tomorrow is realized what is promised today, then for us it is OK," Blatter said. "It is good. I'm relaxed about this decision."

UEFA also welcomed the deal, a week after the federation's governing board was suspended.

"It is a positive situation, especially if you compare it to last week, but we have to remain vigilant," UEFA spokesman William Gaillard said.

He said Poland remains the tournament's co-host, but warned that UEFA's confidence was severely shaken by the spat.

"There is no doubt that our trust has been weakened in Poland's capacity to organize the Euro," Gaillard said. "Now it's up to them to behave in a way that will make us again confident that everything can go well."

Under the deal, the temporary administrator who was appointed last week by the Polish Olympic Committee's arbitration court will be dismissed. An independent panel composed of representatives from FIFA, UEFA and government authorities will oversee the Polish federation's upcoming elections.

"The sports ministry has agreed to adhere to the main principles of the roadmap that had been agreed by the Polish government, FIFA and UEFA in 2007," FIFA said in a statement.

Poland also escapes FIFA sanctions, which would have seen Poland forfeit its upcoming World Cup qualifiers against the Czech Republic on Oct. 11 and four days later against Slovakia.

"However, FIFA will continue to closely monitor the situation at the Polish FA and the implementation of the measures established in the roadmap," FIFA said. "The matter will be analyzed and discussed once more at the next FIFA Executive Committee meeting on 23-24 October."

The Polish federation's governing board was suspended last week after a ruling by the Polish Olympic Committee's arbitration court. Robert Zawlocki was appointed temporary chief of the federation.

A representative from FIFA, UEFA, the Ministry of Sport and the football federation form the four-member panel that is to oversee Polish football until new federation leadership is elected in a vote scheduled for Oct. 30.

Minister of Sport Miroslaw Drzewiecki said the committee would also assume the responsibilities of the temporary administrator and "eliminate irregularities" and "oversee the cleaning up of Polish football."

The panel was originally set up in early 2007 as part of a deal struck to resolve a similar spat between the government and football officials after then-sports minister Tomasz Lipiec suspended the federation's board for allegedly failing to combat corruption in Polish football.