FIFA suspended the Iraqi national team following the collapse of the country's football federation, and will dish out an all-encompassing one-year ban should the situation not be resolved by midnight (AEST) on Thursday.

The decision leaves both the Australia and Iraq in turmoil ahead of Sunday's World Cup qualifier at the Suncorp Stadium in Brisbane and the return fixture on Dubai on June 7.

FFA chief executive Ben Buckley is hopeful the situation can be resolved, as cancelling this weekend's clash would cost over £1 million in gate receipts alone.

"If it doesn't go ahead we're starting to work on some contingencies for the way we would prepare ourselves for the following match," he told AAP.

"I'm sure that the coaching staff and the support staff will come up with an appropriate plan if that's what happens.

"At this stage we are hopeful that the issue will be resolved and the game goes ahead.

"The entire squad and all the coaching staff are just focused on playing the game. That's all they can do."

The Desert Foxes' enforced forfeiture would result in Australia automatically earning all six points from their two abandoned fixtures, thus almost certainly guaranteeing them entry to the final qualifying round.

But Buckley is worried the situation will unsettle the squad, saying: "All of our planning and thinking and preparation has gone into that program.

"We still have two games to play to complete this phase and our focus has always been getting through to the next round."

The FFA have not contacted their counterpart in Iraq following the latter's disbandment, as they do not wish to get embroiled any further in the saga.

"It's not an issue for the FFA," Buckley said. "We don't want to be involved in an issue between a member association government and a member association itself.

"It's entirely out of the FFA's hands."