The decision by a district court in Cologne on Monday also makes the 62 other companies in the consortium providing the cover liable for compensation, FIFA spokesman Andreas Herren said.

"We will be seeking damages from AXA, and it will be 20 percent from the amount," Herren said, referring to the group's share of the insurance deal.

"I have no idea what the amount will be," he added.

"For us the important point is that the court found FIFA's position valid, that AXA was not allowed to terminate the insurance," Herren told AFP.

The French group's subsidiary AXA Colonia was the main insurer for the tournament, but suddenly cancelled the contract for 850 million dollars of cover in October 2001 because of heightened security concerns following the September 11 terror attacks in the United States.

FIFA had paid more than 16 million Swiss francs (12.7 million dollars, 10.3 million euros) to insure the Japan/South Korea World Cup until then.

It later took legal action claiming that it had been left with a month to find more costly cover.

The district court in Cologne declared that the termination of the contract by AXA Versicherung AG was null and void, FIFA said.

The football body said in a statement that it would also examine what steps need to be taken against the other insurers and "take appropriate action".

"The unilateral and -- according to the court pronouncement -- unlawful termination of insurance by AXA had far-reaching consequences for FIFA, especially from the financial and logistical point of view, for which AXA will therefore be paying compensation," FIFA president Sepp Blatter said.

The court in Cologne could not be reached Tuesday.

An AXA spokesman, who had not seen the ruling, reiterated that the company was legally entitled to withdraw from the contract.

FIFA sealed a replacement deal for cancellation insurance with the US company National Indemnity in late October 2001, saying it had paid "higher premiums".