The move allows internationals to stay with their clubs during a crucial period in the domestic season.

Clubs such as Chelsea and Arsenal had objected to the possibility of losing key players midway through the season for a tournament many regard as irrelevant.

The decision may bring a further boost for English football, with the French indicating a willingness to play a friendly with England in January.

Up to five London-based players might have been picked - Arsenal's Patrick Vieira, Emmanuel Petit, and Nicholas Anelka, along with Marcel Desailly and Frank Leboeuf of Chelsea.

'Fun' tournament

French league president Noel Le Graet said the competition was "just for fun," adding that Brazil were only sending a second team.

Fifa president Sepp Blatter expressed disappointment at the decision but said sanctions were unlikely to be taken against France despite the world champions' late withdrawal.

However he found the decision hard to understand since the French team had previously agreed to take part.

"It is regrettable that the French FA has made a decision like this with only 100 days to go before the kickoff of this event," he said.

Desailly: Chelsea blue is the colour for Le Bleu in January

Enrique Borja, president of the Mexican Soccer Federation said the French decision was "a pity".

He hoped an alternative "top-flight" team will be selected and insisted there are no plans to cancel the tournament.

"It affects us. Hopefully, it will be worked out," he said.

European governing body Uefa will now choose another representative, although any other country could face the same problem obtaining the release of players.

Mr Blatter said he would discuss the issue with Uefa president Lennart Johansson on Saturday at a meeting in Glasgow.

Roger Lemerre, the new coach of the French team, had been in favour of the French team's participation in Mexico, which would have allowed him to test new players.

French Football Federation president Claude Simonet confirmed that attempts would now be made to arrange two friendlies.

"One match could be arranged with England in January and with another team in the top 20 of the world rankings in February."

Timing problem

The tournament, due to take place between 8-20 January 1999 has previously been held in Saudi Arabia, but European participation has been a problem because of the timing.

Last season, the Czech Republic competed after the team that beat them in the Euro 96 final, Germany decided not to send a team.

Earlier this week, Premier League chief executive Peter Leaver protested to Fifa on the clubs' behalf.

"What is objected to here is that this is a cup which has been invented and Fifa have sanctioned it without any consultation," said Leaver.

Italian clubs had also been unwilling to release stars such as Zinedane Zidane and Lillian Thuram for the matches.