At first the FA denied the reports of the fling between Eriksson and the 38-year-old former model Faria Alam.

But days later it was forced into a hugely embarrassing admission that not only were the rumours true, but Palios also had a relationship with the same woman.

Palios said that he had informed FA chairman Geoff Thompson and his resignation was accepted with immediate effect.

"I am very sad that I feel this is necessary," said Palios.

"It has been a privilege to be chief executive of the Football Association but with privilege comes the burden of responsibility."

"It is important for me to take ultimate responsibility for everything the FA has done, in good times and bad.

"Personally, I do not accept I have been guilty of any wrongdoing. But it has become clear to me that my action tonight is essential to enable the FA to begin to return to normality.

"When I joined the FA it faced many serious challenges and a lot of very good things have been achieved in the past 13 months.

"I have had the privilege of working with an outstanding leadership team. For the time being, I intend to keep any further thoughts to myself."

Executive director David Davies has been put in temporary charge of the organisation with immediate effect, with the FA due to make a formal statement on the matter on Monday.

His departure comes as a major blow to Thompson, who announced on Tuesday that he had received categorical assurances that Palios had not misled or attempted to mislead the FA.

Events leading up to Palios' resignation began when the News of the World revealed details of Eriksson's affair with Alam three weeks ago.

The FA subsequently issued a strongly-worded denial of the story, claiming there was "no truth whatsoever" in the suggestion that Alam and Eriksson are having, or have had, a sexual relationship.

But Palios' position had come under increasing pressure after The News of the World tabloid newpaper reported Sunday that the FA had offered them details of Eriksson's affair with Alam on the condition the paper stayed silent about the same woman's fling with Palios.

The paper printed a transcript of a phone call in which the FA's director of communications, Colin Gibson, seemingly tried to make the deal.

According to the paper, the call took place the day before it first published details of Eriksson's alleged affair with Alam last Sunday.

The News of the World, in an article headlined "Screwed!", quoted Gibson as saying: "What I'm proposing is that I give you chapter and verse on her (Faria) and Sven and get her to do an interview to say that she lied to everybody this week and that it was true.

"And the pay-off, obviously, is that we leave MP (Mark Palios) out of it. I've got the details, I've got the places, I've got the phone calls. I've got everything," Gibson said.

The News of the World said Alam refused to cooperate with the FA plan, so it ran its story exposing Palios' fling with the secretary.

Eriksson's future as national coach has been placed in jeopardy after the FA called an urgent meeting next week to discuss claims he misled the organisation over his alleged affair with Alam.

The 56-year-old Swede may be charged with gross misconduct and dismissed from his post if he is found to have lied about his relationship with Alam.

However the issue had been further complicated by the fact that Palios, a divorced father of five, also had a fling with Alam.

Palios was attempting a reconciliation with his ex-partner and was extremely keen to keep the affair out of the media, Gibson said, according to the News of the World.

Despite widespread reports that the FA plans to fire the Swede at next Thursday's meeting, Eriksson has insisted he will carry on with the job.

Adding to the confusion, leading employment lawyers have been cited as saying the FA might have a shaky case dismissing someone simply for not being open about a love affair, while England players such as captain David Beckham, Frank Lampard and John Terry have publicly backed their coach.

Meanwhile, it was also confirmed that Gibson had offered his resignation to Thompson but was still awaiting a reply.