• Decision would allow shirts or armbands to display poppy symbol • Ban could be lifted in time for England’s proposed friendly against Germany

Fifa is set to lift its controversial ban on the home nations teams wearing poppies on their shirts or armbands in time for England’s proposed friendly against Germany the evening before Armistice Day.

There was widespread annoyance last year when the world game’s governing body fined the English, Scottish, Welsh and Northern Irish football associations after all defied the ban and players wore poppy-printed armbands during World Cup qualifying matches.

However, a new proposal will allow poppies to be worn, providing the opposing team and the organising body concerned give their approval before the match. It is understood the German football association has informed senior FA executives that it would be supportive of England players displaying poppies when the sides are expected to play at Wembley on 10 November. As it would be a friendly match, Fifa has ultimate jurisdiction and is yet to ratify the new rule but is expected to do so before the game.

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Fifa’s new proposal concerning “political” symbols on shirts amounts to a relaxation over the rules on poppies, often displayed to commemorate military personnel who have died in the line of duty. The proposal states that “Whilst ‘religious’ and ‘personal’ are relatively easily defined, ‘political’ is less clear”.

A ban remains on slogans or images related to individual people or groups, political parties or governing bodies. It is noted that “when commemorating a significant national or international event, the sensibilities of the opposing team [including their supporters] and the general public should be carefully considered”.

A notice was also sent by Fifa to all national governing bodies last week reminding them of law four in the Laws of the Game. It states that on shirts “The following are normally permitted: player name, number, team crest/logo, initiatives [pro football etc]”.

It is understood that a poppy marking Armistice Day is considered a commemoration of a significant national event.

The English and Scottish FAs appealed against fines totalling £51,000 for displaying poppies when the sides faced each other in a World Cup qualifying match on Armistice Day last year.

The Guardian understands those fines have not yet been paid and will be wiped if the proposed change to the rule is approved by the Fifa and the International Football Association Board, the independent guardian of the Laws of the Game.

Many British people choose to wear the poppy symbol on the anniversary of the end of the first world war and the days leading up to the anniversary. But until now Fifa had considered it to be an outward display of politicism.

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In 2011, Fifa eventually backed down after threatening to ban the England team from wearing poppies in a friendly against Spain, allowing them to display the symbol on black armbands. That came after Prince William, the president of the FA, and the then-prime minister, David Cameron, wrote to Fifa demanding the ban be lifted.

However, last year Fifa cracked down once again. Fatma Samoura, Fifa’s new secretary general, said: “Britain is not the only country that has been suffering from the result of war.”

Theresa May waded into the row last year, calling the ban “utterly outrageous”. During a session of prime minister’s question time, she said: “Our football players want to recognise and respect those who have given their lives for our safety and security. I think it is absolutely right that they should be able to do so. She added that there was a “clear message” from the House of Commons that “we want our players to be able to wear those poppies”.

The FA declined to comment until the decision is formally ratified by Fifa.