Mr Blatter is said to have signed a contract that was 'unfavourable to Fifa' and making a 'disloyal payment' to European football chief Michael Platini.
79year old Blatter who has run Fifa since 1998 maintains his innocence.Fifa has recently been hit by a string of allegations.
Blatter & Platini
According to the Swiss attorney general,Mr Blatter is suspected of paying two million swisss francs(£1.3m) in 2011 to Mr Platini.
Mr Blatter is due to step down in February and Mr Platini is widely speculated to take his place.
Mr Platini on his part,issued a statement stating funds received from Mr Blatter 'relates to work carried out under a contract with Fifa'.
The investigation is still ongoing.....
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