The Minister for Transport, Tourism and Sport Shane Ross has said that the FAI wrote to him to indicate that the organisation's board will step down.
Speaking at the Joint Oireachtas Committee on Transport, Tourism and Sport, Mr Ross read out the correspondence he received from FAI President Donal Conway.
"It is the intention that the existing board will step down to allow for a new board to be constituted in the best interests of football," the Committee was told.
It came after Mr Delaney, Executive Vice President of the FAI, said yesterday he was stepping aside pending the completion of an independent review.
Mr Ross described the FAI's appearance at the Oireachtas Committee last week as "shambolic", saying "even the most basic questions, for whatever reasons, went unanswered".
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
The Minister also said no new capital payments will be made to the FAI "until we receive credible answers".
He read the letter he received from the FAI into the record of the meeting.
The letter apologises for any embarrassment caused by the organisation's appearance at the Committee last week, and that the FAI must act legally and follow due process.
The letter also outlines that the FAI is going to put more stringent governance structures and processes in place.
The FAI has engaged with Sport Ireland on proposals for the restructuring of the board, which will be brought to the AGM in July or at an EGM at an earlier date.
Sport Ireland chief 'believes' Delaney is still on FAI payroll
FAI finances & governance back in Oireachtas spotlight
Delaney won't leave without pay off - PFAI solicitor
"At that point, when a new structure has been put in place, it is the intention that the existing board will step down to allow for a new board to be constituted in the best interests of football," the letter stated.
The letter outlined how the FAI wants to restore trust and confidence.
Mr Ross said that he now believes an EGM should be called before the Association's scheduled meeting in July, to facilitate the establishment of a new board.
He welcomed the statement from the FAI President that the board would step down, and said he believes this will happen and it is as "a result of an enormous amount of pressure".
"We are now to see the beginning of the end of the old FAI. And that is something that I welcome," he said.