FIFA plans to open a new under-15 tournament with a symbolic match between Israel and Palestine, according to The Guardian.
The competition will take place in the United States this September.
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The tournament is open to all 211 FIFA members, including Russia, which remains banned from senior-level competitions.
FIFA President Gianni Infantino is determined to use football as a vehicle for peace.
Background of the Proposal
The proposal follows a failed handshake at the FIFA congress in Vancouver in April.
Palestinian FA President Jibril Rajoub refused to stand alongside Israel FA Vice-President Basim Sheikh Sulaiman despite Infantino's intervention.
Infantino introduced the youth initiative immediately after the incident.
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"Let me thank the two representatives from Israel and from Palestine, who have the same rights, duties and obligations," Infantino said.
"We will work together to give hope to the children."
An internal source said the handshake had been agreed beforehand, but Rajoub changed his stance during official speeches.
Palestinian FA Vice-President Susan Shalabi explained: "I cannot shake the hand of someone the Israelis have brought to whitewash their fascism and genocide."
Miami is considered the likely venue due to FIFA's offices there.
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The inaugural event will be a boys' competition, followed by a girls' edition a year later, then two annual festivals from 2028.
