Watches worth more than 16,000 pounds ($26,800 U.S.) each were handed out to a representative from all 32 countries at the World Cup, according to FIFA's ethics investigators.

- FA chairman Greg Dyke to return 'gift' watch

A Parmigiani watch was also distributed in a gift bag from the Brazilian Football Confederation (CBF) in June to the 28 FIFA executive committee members, although it is unknown what happened to the gift bag for the English FA.

FIFA's ethics committee said accepting such valuable gifts violates its rules and has demanded that all the watches be returned by Oct. 24 otherwise it will launch disciplinary proceedings.

FIFA's ethics committee says that it was immoral for officials to accept the watches. Fabrice Coffrini/AFP/Getty Images

A statement from the ethics committee said: "The CBF should not have offered the watches, and those who received gift bags should have promptly checked whether the items inside were appropriate and, upon discovering the watch, either returned it or ... reported the matter to the investigatory chamber.

"The FIFA code of ethics plainly prohibits such gifts. Football officials may not offer or accept gifts that have more than 'symbolic or trivial value.'

"If in doubt, gifts shall not be offered or accepted. Football officials are expected to be aware of the importance of their duties and concomitant obligations and responsibilities.

"In an effort to resolve this matter expeditiously, the investigatory chamber will not pursue further formal ethics proceedings in this matter against officials who submit the Parmigiani watch they received from CBF to the secretariat of the investigatory chamber by no later than Oct. 24, 2014.''

The watches will then be donated to an independent nonprofit organisation "committed to corporate social responsibility projects in Brazil," said the statement.

Several officials did report the watches to the ethics committee, and the CBF confirmed it had distributed 65 gift bags, each containing a Parmigiani watch.

The recipients were the 28 FIFA executive committee officials, a representative from each of the 32 nations competing in the 2014 FIFA World Cup and one representative from each of the 10 member associations in South American confederation CONMEBOL, the statement said.

The CBF said it had paid $8,750 U.S. for each watch, but the ethics committee has obtained an independent valuation of 25,000 Swiss francs (16,400 pounds).