The decision followed talks here Wednesday between AFC president Mohamed bin Hammam, Premier League chairman Sir Dave Richards and Manchester United chief executive David Gill.

"This match is a key element of the Malaysian government's celebrations of its 50 years of independence and presents a marvellous opportunity for us to play in front of our many Malaysian fans," United said in a statement.

"Unfortunately, new information has come to the club's attention concerning the FAM's (Football Association of Malaysia's) agreement with the AFC to act as host for the Asian Cup, which means the club cannot play the game without the official approval of the AFC."

United said the only way the match could go ahead was if the AFC changed its mind.

An AFC official Thursday told AFP its position remained unchanged -- that the match cannot take place while the Asian Cup is on from July 7-29.

All four Asian Cup host nations -- Indonesia, Malaysia, Thailand and Vietnam -- made pledges to the AFC that they would not hold or promote any other football matches during the flagship tournament.

Bin Hammam has warned the FAM it faces "wide-ranging legal repercussions" for failing to toe the AFC line, although he has not made clear what they might be.

His fear is that a club of United's magnitude would draw attention away from the region's most prestigious football tournament, held every four years.

However, the rest of United's Asia tour to South Korea, Japan and Macau is set to go ahead despite AFC calls for it to be postponed.

The Malaysian climbdown, though, is a victory for the AFC, which had the backing of FIFA president Sepp Blatter, and a slap in the face for the FAM and the government, which invited United as part of their independence celebrations.

"We are sad if they are not coming," Malaysian Tourism Minister Tengku Adnan Mansor told AFP.

"We have already spoken to the AFC a couple of times, but the trouble with the AFC is that they are not compromising. The final is not even played in Malaysia so I am confused and upset."

The minister added that the government was attempting to reach the club and talk to them.

"We've got to find out why they are not coming. I have not spoken to them. As far as the government is concerned, we want them to come."

Malaysian Prime Minister Abdullah Ahmad Badawi earlier this month called for the match to go ahead. His son-in-law Khairy Jamaluddin, an influential political leader, Thursday urged the AFC to reconsider.

"If Hammam is unwilling to agree to this request, it will be a tremendous insult to the government of Malaysia which houses the AFC headquarters and has been a strong supporter of AFC and Asian football in general," Khairy told the state Bernama news agency.

FAM deputy president Tengku Abdullah said the body had attempted to reach an amicable solution.

"In fact, I requested that United come two days later but they said it's not possible," he was quoted as saying by the New Straits Times.

"There is nothing much we can do at this point in time."

United have fixed a friendly against Inter Milan at Old Trafford on August 1 and are unable to reschedule the match for after the Asian Cup. They then take on Chelsea in the season-opening Community Shield on August 5.

They now kick off their pre-season commercial tour against J-League champions Urawa Red Diamonds on July 17 before a showdown with FC Seoul on July 20. The team then travel to Macau for a match against Shenzhen on July 23.