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Soccer-Palestine drops motion to suspend Israel from FIFA

* FIFA creates body to monitor Palestinian situation

Related Stories

  1. Tense talks on Israel expulsion vote at FIFA AFP
  2. Israel to mull Palestinian football improvements AFP
  3. Soccer-Palestine FA will not drop request to suspend Israel Reuters
  4. Palestinian FA to press for FIFA ban on Israel AFP
  5. Soccer-Blatter proposes holding Israeli-Palestinian 'peace match' Reuters

* Netanyahu hails Palestinian "failure" to freeze Israel

* Ordinary Palestinians disappointed over outcome (Adds reaction from Israeli prime minister, Palestinians)

By Brian Homewood

ZURICH, May 29 (Reuters) - Palestine unexpectedly dropped its motion to suspend Israel from international football on Friday amid highly-charged scenes at the FIFA Congress.