Footballers from Scotland, Wales, Northern Ireland and England will be available for selection for Team GB at the 2012 Olympics.
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 BOA announcement has sparked outrage from the Scottish and Welsh FAs.
Scottish Football Association president George Peat told the Press Association: "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 FA have no authority to speak on our behalf - they do not represent Wales whatsoever and that's a fact
Welsh FA president Phil Pritchard
Welsh FA president Phil Pritchard was equally furious, saying the FA had no right to speak on behalf of the other associations on Olympic matters.
Pritchard told the Press Association: "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."
The BOA's statement indicated that all home nations were behind the move to field a GB team made up of players from England, Scotland, Northern Ireland and Wales.
"The FA has consulted with its partner associations in Scotland, Wales and Northern Ireland in developing the player-selection criteria and timeline," read the statement.
"All four associations have received a written assurance from the secretary general of the Federation Internationale de Football Association (Fifa), the international federation for football, that participation in the 2012 Olympic football tournament will in no way compromise their autonomy and independence for other Fifa-sanctioned tournaments, nor will it have any impact on their positions of leadership within the Fifa governance structure."
The last time Britain competed in an Olympic football event was in 1960, when the men's side failed to win a medal in Rome after beating Taiwan 3-2, drawing 1-1 with Italy and losing 4-3 to Brazil.
Team GB has never fielded a women's football team at an Olympics.
More to follow.
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