According to the reports, insurance companies have been holding out over a decision to provide coverage for the event due to concern over the speed of stadia development, security issues, transport infrastructure and the political climate in South Africa.

Last month's FIFA Executive Committee meeting saw world football's governing body reveal that it was "aiming at reserve capital of over US$800 million by the end of 2010".

The reports had stated that this move reflected fears over insurance support for the World Cup, claims that FIFA's director of communications Andreas Herren has strongly refuted.

In a statement released to PA Sport, Herren said: "FIFA has gone on record on a number of occasions that it is a statutory obligation to build reserves and that these reserves are built among other reasons so as to be able to cope with a World Cup cancellation. We have never made any reference to 2010 in particular."

It was revealed last month that the South African government will splash out more than $3.7 billion on hosting the 2010 World Cup.

An official report revealed that around $2.5 billion has been allocated for stadium, transport and infrastructure improvements.

The initial estimate for the cost of hosting the event was less than $400 million back in 2004, and the budget stood at $1.95 billion when it was first announced in October 2006.

However, new stadia in Cape Town and Durban - which were not originally planned - are now being built, and there has been a sharp increase in the price of building materials, such as cement.