The Minister for Sport Shane Ross has rejected the FAI's request for a bailout.
Minister Ross met delegates last night to discuss the associations poor financial state, which sees it facing liabilities of €55m.
He said a meeting with UEFA will now be sought in the coming days to find a solution.
The Minister also said Government funding will not be restored any time soon.
He said: "We've been told by COSI that it would be a very bad idea, but we have also decided ourselves that they haven't complied with Corporate governance.
"They haven't reformed properly yet, they've still got at least one person who was on the old board on this board, they haven't appointed any independent directors, they haven't appointed an independent Chief Executive Officer.
"On top of that, they've got an enormous debt and I think restoring funding at this stage would be quite absurd."
The Minister revealed that the FAI was looking for "over €10 million" from the Government, but he said the Government was "not in the business of bailing out the FAI in any circumstances".
"There was no way the Government could possibly think of giving it to them. There have been serious recommendations made to us not to fund the FAI at present".