Faced with widespread protests across South America, FIFA blinked on Wednesday and adjusted its ban on high altitude games.
FIFA eased the restrictions to World Cup qualifiers above 3,000m rather than 2,500m.
The change, brought on by protests from South American countries, means international matches can still be played in the capitals of Colombia and Ecuador, but rules out Bolivia's capital, La Paz. While the initial decision applied to all international games, the new rule will be limited to World Cup qualifiers.
The announcement by FIFA president Sepp Blatter came after the world soccer body's executive committee heard a complaint from CONMEBOL, the 10-nation South American soccer confederation, which voted unanimously two weeks ago to press FIFA to overturn the ban.
"This turned out to be a huge political discussion on a subject that was solely aimed at protecting players' health," Blatter said. "We do not want to keep people from playing football at altitude ... [but] we do not want casualties on the field."
The FIFA limit was adjusted 500m higher.
"Our medical committee has acknowledged there is a certain measure of flexibility in its recommendations," Blatter said.
Citing medical concerns for players and an unfair home advantage for highland teams, FIFA last month prohibited international tournaments and World Cup qualifying matches in stadiums above 2,500m.
The original ruling eliminated all international matches in the capitals of Bolivia, Colombia and Ecuador, and in the stadiums of leading teams in Peru, Chile and Mexico. Wednesday's ruling will still block World Cup matches from being held in the Bolivian capital of La Paz.
But World Cup matches will now be allowed in Bogota, Colombia, 2,640m above sea level, and in Quito, Ecuador, at 2,800m above sea level.
Blatter also noted that any non-World Cup games could still be held in stadiums above 3,000m.
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