Lord Triesman has resigned as both chairman of the Football Association and also England's 2018 World Cup bid following an emergency meeting at Wembley.
Triesman has stepped down following a day of controversy after the Mail on Sunday published quotes from the peer obtained from a secretly taped interview with a former civil aide.
The 66-year-old politician suggested that Spain were attempting to bribe referees at this summer's World Cup.
Just days after he helped present England's official World Cup 2018 bid to FIFA president Sepp Blatter in Zurich, he suggested that Spain were ready to abandon their own bid to stage the tournament and get behind Russia's effort should they help them bribe referees in South Africa.
The announcement of Triesman's immediate departure followed an emergency board meeting on Sunday afternoon which lasted for two hours.
Before his departure, the 2018 bid team had attempted to limit the damage caused by the explosive article by faxing letters of apology to the Russian and Spanish FAs.
"A private conversation with someone whom I thought to be a friend was taped without my knowledge and passed to a national newspaper. That same friend has also chosen to greatly exaggerate the extent of our friendship," Triesman said in a statement on the FA's official website.
"In that conversation I commentated on speculation circulating about conspiracies around the world. Those comments were never intended to be taken seriously as indeed is the case with many private conversations.
"The views expressed were not the views of the 2018 bid board or the FA. Nobody should be under any misapprehension that The FA or 2018 bid board are disrespectful of other nations or FIFA and I regret any such inference that may have been drawn from what has been reported.
"Entrapment especially by a friend is an unpleasant experience both for my family and me but it leaves me with no alternative but to resign. I have immediately informed The FA board of my decision."