Uefa had been unwilling to sanction the final in the United Kingdom as the players, clubs and organising body would have been liable to pay tax on any sponsorship of the event.

Andy Burnham, the secretary of state for culture, media and sport, said that the tax would not apply for any Champions League final held in the country.

"Uefa have publicly acknowledged that Wembley would be an outstanding venue for the 2011 Champions League final, and we are hopeful that with the tax obstacle removed our bid will be successful," said the FA chairman Lord Triesman.

"It is also a positive indication for our 2018 World Cup bid."

Uefa are expected to decide on the venue later this year.