After a board meeting on Monday, Bente Erichsen, the centre's director, said that it planned to slowly discontinue its joint Handshake for Peace venture with FIFA.
”The board has decided that we will end our cooperation with FIFA as soon as the conditions are right for it,” she told Norwegian football magazine Josimar. "We don't want to shoot down Handshake for Peace, but it's natural for the peace centre to withdraw from the cooperation and let FIFA and the football association take over the project on their own.”
FIFA and the Nobel Peace Centre launched Handshake for Peace in 2012, aiming to "inspire the world to unite in peace, solidarity and fair play.”
During the 2014 FIFA world cup in Brazil, team captains shook hands before and after games, as a symbol of friendship, respect and fair play.
As part of the agreement FIFA contributed one million kroner a year to the Nobel Peace Centre.
Many have suspected that former FIFA President Sepp Blatter had long campaigned to receive the Nobel Peace Prize and viewed the venture as a step towards that goal.
Kjetil Siem, head of the Norwegian Football Association and the driving force behind the Handshake for Peace initiative criticized Erichsen's decision.
“There will be wars in the world, but Handshake for Peace is a good communication platform, reaching the World Championships as well as the jungles of Burma," he said. "I understand that working with FIFA is difficult now, with the arrests and massive rumours, I understand that some people will distance themselves,” he said.
Fourteen FIFA officials were arrested on corruption and money laundering charges in May.