The hopes of the Matildas hosting a world cup will be destroyed unless the men running the game settle a long-running argument over board control.

Key points: Funding for 2023 world cup reliant on resolution of domestic governance dispute

Funding for 2023 world cup reliant on resolution of domestic governance dispute Administrators must agree on new structure to run game by Friday

Administrators must agree on new structure to run game by Friday FIFA intervention, "last thing game needs"

The Federal Government has put the game on notice, declaring it will withhold $4 million in crucial world cup bid funding if a split between the game's administrators is not resolved.

The ultimatum heaves pressure onto state federation heads and club chiefs — all of whom are men — to agree on a new corporate structure for the game, and the situation has enraged former Matildas.

If agreement cannot be reached, world governing body FIFA has threatened to install a new board to run football in Australia, made up of individuals of its choosing.

Having spent more than $40 million on the failed and controversial bid for the 2022 Men's World Cup, the Government confirmed the outcome of this process would affect whether it funded the bid.

Game 'bigger than politics'

In June, Prime Minister Malcolm Turnbull announced an initial $1 million in funding to prepare a bid for the 2023 Women's World Cup.

An extra $4 million was promised, "if the Government is satisfied that there are reasonable prospects of success and that the process conforms with the highest standards of probity".

A spokesperson for the Department of Health told the ABC the Government was "acutely aware" of the "most serious probity allegations" relating to its 2022 FIFA World Cup bid and that "the FIFA and FFA governance discussions will be given consideration" in the funding decision.

Former Matilda and W-League coverage host Amy Duggan said it would be a "travesty" if Australia missed out on the opportunity to bid to host a world cup in these circumstances.

"The game is, or should be, bigger and better than politics," she said.

"The game should be put first, to unite and inspire."

Another former Matilda, Kathryn Gill, who now works for Professional Footballers Australia as a player relations executive, told the ABC the bid was crucial for the health of the sport.

"If football's politicians can't see the nexus between effective governance locally and Australian players and Australian teams achieving on the global stage, then they need to be held to account," she said.

A spokesperson for the FFA, which is handling the bid, said the governance discussions are "expected to be resolved" by November 30 and that work was continuing on the bid "quite separately".

FIFA intervention deadline

According to a letter to stakeholders published by AAP, FFA chairman Steven Lowy stated this week governance matters would need to be finalised by Friday, September 29, in order to avoid a FIFA intervention.

In the letter, Mr Lowy described that process as, "the last thing our game needs at this point".

A meeting of stakeholders will be held on Thursday to attempt to secure agreement.

FIFA established a temporary board in Cameroon last month, with members identified by FIFA and the African Football Federation.

Even as the governance disputes rages on, preparations for the World Cup bid continue. The FFA expects a decision on the host to be made by FIFA in early 2019.

Colombia, Japan, New Zealand and Thailand have expressed interest in hosting the tournament.

In 2010, then-FFA CEO Ben Buckley claimed the decision to withdraw its bid to host the 2011 FIFA Women's World Cup was based on advice from consulting firm PwC that the event would incur a deficit of tens of millions of dollars.

Popularity in the Matildas has grown in recent years. Earlier this month the team set a new home crowd record of 16,829 in the match against Brazil in Newcastle.