The Football Association of Ireland chief executive, John Delaney, has confirmed that the body accepted a payment from Fifa after Thierry Henry’s handball in the 2010 World Cup qualifying play-offs ended their hopes of qualifying for the tournament in South Africa. The FAI later confirmed that the payment amounted to €5m (£3.67m) and Delaney claimed it was made so the organisation would not pursue legal action against Fifa.

However, Fifa later released a statement stating that the money was in fact a loan in order to help construct a stadium that was later written off and actually amounted to $5m (£3.26m).

Speaking to RTE, Delaney claimed the payment was “a very good and legitimate deal” for the FAI but that it included a confidentiality agreement.

“We felt we had a legal case against Fifa because of how the World Cup play-off hadn’t worked out for us with the Henry handball,” Delaney said. “Also the way [Sepp] Blatter behaved, if you remember on stage, having a snigger and having a laugh at us. That day when I went in, and I told him how I felt about him, there were some expletives used and we came to an agreement.

“That was a Thursday and on Monday the agreement was all signed and all done. It’s a very good agreement for the FAI and a very legitimate agreement for the FAI.”

Thierry Henry and his infamous handball at the Stade de France in 2009. Photograph: Philippe Lecoeur/MAXPPP/EPA

The Fifa statement appeared to contradict some of what Delaney said: “On 18 November 2009, there was play-off match between France and the Republic of Ireland for a place in the 2010 World Cup finals. During the match, a handball by France’s Thierry Henry led indirectly to a goal against the Irish team. Ireland did not qualify for the 2010 World Cup finals.

“While the referee’s decision is final, and the Football Association of Ireland (FAI) ultimately accepted it as such, in January 2010 Fifa entered into an agreement with FAI in order to put an end to any claims against Fifa. Fifa granted FAI a loan of $5 million for the construction of a stadium in Ireland. At the same time, Uefa also granted the FAI funds for the same stadium.

“The terms agreed between Fifa and the FAI were that the loan would be imbursed if Ireland qualified for the 2014 Fifa World Cup. Ireland did not so qualify. Because of this, and in view of the FAI’s financial situation, Fifa decided to write off the loan as per 31 December 2014.”

The FAI later released a statement supporting Delaney’s claims, again citing the figure as €5m, rather than dollars.

“Further to Fifa’s statement this evening in relation to the €5m settlement with the FAI, the Association can now confirm that a legal settlement agreement was reached with Fifa following the threat of a legal case by the Association against world governing body in early 2010.

“The Association has, until now, abided by the confidentiality agreement required by Fifa as part of the settlement.

“The settlement was reached following strong legal advice given to the Association regarding the case against Fifa, and was a legitimate payment that enabled the Association to put €5m into the Aviva stadium project. This is fully reflected in our financial statements which are audited independently. The Association accepted Fifa’s settlement offer to avoid a long, costly and protracted legal case. The offer given to the Association was fully written off by Fifa in 2014.

“Fifa’s settlement with the Association has at no time influenced the FAI’s criticism of Fifa as demonstrated by our consistent criticisms of Sepp Blatter. Furthermore the settlement was made without any conditions other than confidentiality.”

The extraordinary move came after the Republic of Ireland were denied a place at the 2010 World Cup by William Gallas’s play-off equaliser for France, which included a crucial handball from Henry in its build-up. Following the match, the FAI requested to be added to the tournament as a 33rd team given they had been denied a place by the Frenchman’s misdemeanour. But the manner in which Blatter rejected the proposal irked Delaney. “They have asked, very humbly ‘Can’t we be team No33 at the World Cup?’ They have asked for that, really,” Blatter said at the time, sniggering.

“In 2009 I called him an embarrassment to Fifa and to himself,” Delaney added. “He called me over about that, across the table like I am talking to you, with one or two expletives. He said: ‘No-one speaks to me like that’, and I said, ‘well I do’ and that was it.”

Speaking to RTE, Delaney, who earns €360,00-a-year, also categorically denied he has ever accepted a bribe, adding while laughing: “Not on my salary.” The chief executive’s pay has long been questioned in Ireland, especially considering the domestic champions earn a mere €100,000. “Look, I am paid to do a job and I know I’m paid very well,” he added. “I’m very happy in the job, if anybody came up to me and offered me a bribe, I’d say, because you offered me a bribe, you’re not getting anything.”

Delaney also referred to a bizarre recent encounter between Blatter and his partner which ended with the FAI chief executive asking the Swiss to “move on” and stop staring. “He met Emma, my partner, in Vienna recently. He stared at her for seven or eight seconds and he said: ‘I approve of your new girlfriend’. I asked him to move on, move on please.

“It was an extraordinary moment. He stared at her and I said ‘move on’ and he did.”