FIFA has suspended Trinidad and Tobago for "grave violations" of its statutes committed by the country's Football Association.
The worldwide body and the Trinidad and Tobago Football Association (TTFA) have been locked in a protracted dispute since March after the organisation in Trinidad contested a FIFA decision to appoint a Normalisation Committee to run its affairs at the High Court in the country - a breach of FIFA's statutes.
FIFA installed the Committee after ruling the TTFA's former leadership had "engaged in various acts of serious mismanagement".
Former TTFA President William Wallace rejected the claim from FIFA and took the issue to court, leading to the global body to suspend the TTFA.
The decision deals a considerable blow to football in Trinidad and Tobago, whose men's team qualified for the 2006 FIFA World Cup in Germany.
In a statement, FIFA said it had given the TTFA until 16 September to withdraw the case but the organisation had failed to do so.
A further deadline of September 23 was also ignored by the TTFA, FIFA said.
"The suspension was prompted by the former leadership of the TTFA lodging a claim before a local court in Trinidad and Tobago in order to contest the decision of the FIFA Council to appoint a Normalisation Committee for the TTFA," FIFA said in a statement.
"This course of action was in direct breach of article 59 of the FIFA Statutes, which expressly prohibits recourse to ordinary courts unless specifically provided for in the FIFA regulations.
"A Normalisation Committee was installed by the FIFA Council after it was established that the former leadership of the TTFA had engaged in various acts of serious mismanagement.
"The decision of the former leadership to go to a local court to contest the appointment of the normalisation committee jeopardises not only the future of football in Trinidad and Tobago but also endangers the overall global football governance structure, which relies on the Court of Arbitration for Sport as the exclusive forum for resolving disputes of this nature."
During Wallace's controversial three-month reign, TTFA staff were only paid once, and the organisation's bank accounts were frozen by a Trinidad and Tobago court over alleged unpaid debt.
In a recent video address, Wallace claimed he and his Board were removed "before we had a chance to implement plans for increased transparency and financial probity".