While the stand-off appears to be simply both organisations flexing their muscles, there are fears it could spill over and harm England's bid to host the 2018 World Cup. Sources close to the bid accept that such a skirmish is unlikely to be a deal-breaker but believe acquiescing to Fifa's wishes would avoid possible loss of good will at the game's governing body.
Related ArticlesManchester United beat Espanyol in fitting farewell for Ole Gunnar Solskjaer
Don Howe: Roma v Manchester United clashes
Manchester United to be hit with Nemanja Vidic ban after red card in Club World Cup
Didier Drogba's agent denies Inter Milan contact
Champions League final does not reflect English strength, says Marcello Lippi
Fifa President Sepp Blatter presented the badge to United chief executive David Gill before last night's game and has referred to the crest as "an honour" for a club to put on their shirts.
The issue is likely to be raised when Blatter meets the Premier League's chief executive, Richard Scudamore, in Zurich next week, where Fifa's controversial 6 plus 5 rule will dominate the agenda.
Fifa Secretary General Jerome Valcke said: "It makes more sense for Manchester United to wear the badge in every game in every competition, rather than just in the Champions League. That is what Milan did for all of last year while they were entitled to wear it.
"But the FA Premier League has to be different. Their view is that it should only be worn in the Champions League as that is the competition which you have to win to enter the Club World Championship. But you could say that you have to win the Premier League to be in the Champions League."
The FA have given United permission to wear the crest during FA Cup games until December, when new Club World Champions will be crowned in Japan. Italy have a similar badge on their shirts, denoting their status as world champions, and talks are ongoing with Spain to dispense a symbol of their status as reigning European champions.