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 The Swiss national, who has led FIFA for 17 years, is being
investigated by U.S. prosecutors and the Federal Bureau of
Investigation, a person who spoke on condition of anonymity told
Reuters late on Tuesday. An FBI spokesman declined comment.
News of Blatter's investigation was earlier reported by The New York
Times and ABC News. Blatter has not been charged with any
wrongdoing. FIFA did not respond to a request for comment on Blatter
being under investigation.
Blatter, 79, announced his decision to step down at a news
conference in Zurich on Tuesday, six days after police raided a
hotel in the city and arrested several FIFA officials - and just
four days after he was re-elected to a fifth term as president.
"FIFA needs profound restructuring," he said. "I decided to stand
again to be elected because I was convinced it was the best option
for football. Although the members of FIFA gave me a new mandate,
this mandate does not seem to be supported by everyone in the
world."
He said an election to choose a new president would be held as soon
as possible, though a FIFA official said it would probably not take
place until at least December. Blatter will remain in his position
until a successor is chosen.
 His daughter, Corinne Blatter-Andenmatten, told a Swiss newspaper
her father's decision to stand down was not tied to recent
corruption allegations. "His decision has nothing, absolutely
nothing, to do with the allegations going around," she told daily
Blick.
NOW TIME FOR REFORMS
European sports officials said Blatter's resignation, with FIFA
mired in the worst crisis in its 111-year history, was an important
step, but that the organization needed deeper changes.
"Beyond the people, structural reforms must be undertaken," said
French Sports State Secretary Thierry Braillard.
New Zealand Football (NZF) Chief Executive Andy Martin said soccer
must now rebuild its tattered reputation.
"This has lifted a cloud and taken away a lot of the concerns of
stakeholders and their association with the sport," he told Reuters.
"We now want a strong collaborative leader who can bring the
football world together and can bring out the change that the game
has been crying out for."
The Asian Football Confederation (AFC), which has been a staunch
ally of Blatter, said it was monitoring the situation and would
discuss internally the "best way forward for both FIFA and world
football".
AFC member the Philippines Football Federation said it was surprised
by Blatter's decision, but noted this "offers a big opportunity to
continue and intensify the reforms that have been started. Indeed,
deliberate focus on more governance reform and transparency is now
called for."
QATAR FEARS
FIFA was stunned last week by the announcement of a U.S.
investigation into alleged widespread financial wrongdoing
stretching back more than two decades. Swiss authorities also
launched their own criminal probe into the awarding of the 2018 and
2022 World Cups to Russia and Qatar, respectively.
As Blatter signaled his exit, English Football Association chairman
Greg Dyke raised the possibility that the controversial vote that
awarded Qatar the 2022 tournament could be re-run. "If I was the
Qatari organizers I wouldn't sleep very well tonight," he told
British media.
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Qatar Football Association president Sheikh Hamad Bin Khalifa Bin
Ahmed Al-Thani hit back, indicating the small Gulf state will not
give up hosting soccer's showpiece event without a fight. "We would
urge Mr Dyke to let the legal process take its course and
concentrate on delivering his promise to build an England team
capable of winning the 2022 World Cup in Qatar," he said.
Qatar's stock index tumbled as much as 3 percent to a 6-week low in
early Wednesday trade amid heightened investor fears that Qatar
could be stripped of its hosting rights.
NEW FACES, FRESH START
Among the potential candidates to lead FIFA, European football
federation chief Michel Platini, a French former international
player, said Blatter had made "a difficult decision, a brave
decision, and the right decision".
French soccer federation president Noel Le Graet said a European
should head FIFA, with Platini his choice for the post.
Jordan's Prince Ali bin Al Hussein, who withdrew from last week's
presidential election after winning 73 votes to Blatter's 133 in the
first round, stopped short of confirming he would run again. Asked
if there should be a fresh start at FIFA, he told Britain's Channel
4 News: "I'm willing to help."
Several other candidates may emerge ahead of the election for a new
president, including Domenico Scala, independent chairman of the
audit and compliance committee of FIFA.
Former Brazil international Zico, 62, did not rule out a bid, and
Venezuelan President Nicolas Maduro suggested Argentine soccer
legend Diego Maradona could be the next FIFA chief.
Chung Mong-joon, the billionaire scion of South Korea's Hyundai
conglomerate and former member of FIFA's Executive Committee, said
he would "carefully consider" running for the presidency and would
meet with European delegates before making any decision.
Others in the frame to become only FIFA's ninth chief include Jerome
Champagne, a former French diplomat and FIFA deputy secretary
general, and German Wolfgang Niersbach, a former sports journalist
and FIFA media chief.
Interpol said it issued international wanted-person alerts for two
former FIFA officials - Jack Warner, former president of CONCACAF,
which governs football in North and Central America and the
Caribbean, and Nicolas Leoz, former head of South America's soccer
federation - and four corporate executives at the request of U.S.
authorities as part of the corruption probe.
(Writing by Ian Geoghegan; Editing by Alex Richardson)
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