Speaking at the FIFA congress, Rajoub said he was dropping the motion to have Israel suspended from the organization.
"I have decided to drop the suspension," Rajoub said, adding that he instead proposes that free movement be ensured for Palestinian players. He also wants an investigation launched into alleged Israeli racism and a vote on Israeli teams on Palestinian territories.
RAJOUB: I decided to DROP the suspension but it does not mean I give up the resistance to protect the Pal footballers pic.twitter.com/MvbRJlTAB5— Israel News Flash (@ILNewsFlash) May 29, 2015
He added that he wanted to find a "responsible solution" to the issue, as opposed to "scoring points," Israel's Arutz Sheva 7 reported.
The move was welcomed by FIFA president Sepp Blatter.
The FA president added that he thinks "it is right" to ban Israel, but that "a lot of colleagues" had expressed "how painful it is for them to hear, in this (football) family, to hear the issue of suspension."
Meanwhile, the president of Israel's Football Association, Ofer Eini, said he wanted Israel and Palestine to "work together" and "join forces."
"Let's leave it to the politicians to do politics," he said.
He proposed a joint committee between Israelis, Palestinians, and FIFA, which was approved by the organization.
Eini and Rajoub shook hands following the proposal's approval.
PHOTO: Palestinian FA and Israeli FA representatives shake hands at #FIFACongress http://t.co/jzOKym1atX pic.twitter.com/rTTFzihx8b — RT (@RT_com) May 29, 2015
Comment: Will this help prevent Israeli soldiers from shooting Palestinian soccer players feet?