Footballers from Scotland, Wales, Northern Ireland and England will be available for selection for Team GB at the 2012 Olympics, reports BBC Sport. There has been opposition to all-British teams competing in London from every home nation apart from England.
But the British Olympic Association said an "historic agreement" has now been reached.
"It has been a long, six-year journey to get to this point," said BOA chief executive Andy Hunt.
However, the announcement has been met with outrage from the Scottish and Welsh Football Associations.
George Peat, the Scottish Football Association president, said of the BOA's "historic agreement": "I am absolutely astounded that they have put out this statement. I know nothing about any such agreement and we want nothing to do with this tournament."
The president of the Welsh FA, Phil Pritchard, was equally furious, saying the FA had no right to speak on behalf of the other associations on Olympic matters. Pritchard said: "We are not part of any agreement. The FA have no authority to speak on our behalf - they do not represent Wales whatsoever and that's a fact. We have not discussed this at any time recently."