Even though Raymond Kennedy was forced into quitting, he was allowed to stay on at the Association and sit on FIFA's disciplinary committee.

He stepped aside after it emerged the sacking of former chief executive Howard Wells cost the Association more than £500,000. He will formally stand down in September.

Neal Anderson, chairman of the London Northern Ireland Supporters' Club, said: "I think there is a lack of respect and confidence that they (the IFA management) are modern, forward-looking people.

"They need to demonstrate to the fans that they are actually all about being progressive and developing Northern Ireland football rather than having incidents like the Wells affair which has cost grassroots football half a million pounds however well-intentioned that view was."

Mr Kennedy will retain FIFA and UEFA positions and new IFA roles will include advising on the proposed redevelopment of Windsor Park.

He will be a member of the IFA's delegation to the 125th annual general meeting of the International Football Association Board, which will be held in Wales in March 2011.

The Limavady man will also become an honorary life vice-president of the IFA following his departure.

Mr Anderson added: "If you speak to most fans I think they have a dim view of the entire set-up.

However he said Mr Kennedy had the interests of fans at heart.

"That is the positive but he is tarnished by the whole Wells saga, it is always difficult to come back from a bit of a PR disaster," he added.

IFA vice-president David Martin also said he had resigned yesterday after an official report into Mr Wells' settlement criticised the pair.

An IFA statement said: "Whilst noting Mr Kennedy's decision, the Association will continue to avail of Mr Kennedy's significant experience and influence in football."

It added: "The Association is aware that recent events have indicated weaknesses in its structure and governance, and confirms its commitment to address these matters in the near future."

An unfair dismissal case by Mr Wells cost the IFA more than £500,000, which included a payout to the former chief executive and legal costs after the case was settled before it was heard by an independent panel. His sacking followed his pursuit of grievance procedures claiming he had been treated unfairly because he was an Englishman.

An independent report criticised the roles of Mr Kennedy and his deputy in the sacking.

Mr Kennedy said: "I was well aware that it would cost the IFA but the amount surprised me. I never believed it would be that big."

He told the Belfast Telegraph: "While the Sports Council report slams myself and David Martin for the costs involved in getting rid of Mr Wells - and I have no problem with that - the overall facts and reasons behind the settlement have never fully come out because of confidentiality. Maybe it is time they did."

He said he was not part of the out of court settlement and would have preferred the case to have gone ahead.

"The board was informed of the initial costs surrounding the dismissal and all of them endorsed the decision to remove Mr Wells and agreed that he had to go in the interests of the IFA," he said.

"Myself and David led the way in bringing about changes such as creating the Board and committee structures.

"In hindsight, mistakes were made but they were done at the time for the best of reasons."

Sports Minister Nelson McCausland welcomed the fact that today's action had been taken and said there needed to be a break with the past.

"I think it is regrettable that £500,000 was squandered," he said.

He added: "They (the IFA) recognise that for quite some time there have been serious shortcomings within the organisation.

"There is a real commitment there to address those shortcomings."