The court case filed by the Giwa-led faction of the NFF to void the FIFA recognised elections, which saw Amaju Pinnick emerge as NFF President has been reportedly withdrawn.
The withdrawal followed the intervention of President Jonathan on Wednesday.
Fifa had given Nigeria until today, Friday 31st October 2014, to reverse last week’s ruling by the Jos High Court that annulled the 30 September election of Amaju Pinnick as Nigeria Football Federation president.
Fifa has not confirmed if Nigeria will escape a ban which would run until May.
Football’s world governing body wrote to the NFF on Tuesday, warning them the latest instance of government interference – prohibited under Fifa rules – risked the country being banned from global football until the next Fifa congress.
On Wednesday President Jonathan held talks with the two main protagonists in the long-running NFF saga, the Fifa-recognised president Amaju Pinnick and the man who claims he should have the role, Chris Giwa.
The president then ordered Giwa’s associates to withdraw their case which had led to the ousting of Pinnick.
And on Thursday the legal action, which had been initiated by two members of the previous NFF executive led by Giwa, was reportedly withdrawn.
BBC Sport understands reinstated NFF officials have subsequently communicated to Fifa the latest developments in the hope that the governing body will ease its stance.