Malawi is likely to face financial penalties of up to K8 million for pulling out of the 2019 Africa Cup of Nations and the 2018 African Nations Championship (CHAN) and could be suspended from future tournaments.
The Football Association of Malawi (FAM) says it will withdraw from the qualifying competition for the 2019 African Cup of Nations because it can't afford to fund the Flames team's campaign.
FAM says it still needs to officially inform the Confederation of African Football (CAF) of its intention to withdraw. It says it's also pulling out of next year's African Nations Championship.
CAF is expected to slap Malawi with a fine as regulations as read with Chapter 27, Article 58 stipulates that any FA withdrawing from the competition will be liable to a fine of $10,000.
"It will aso not be allowed ti participate in the next edition of the Afcon."
FAM announced it was withdrawing from the competitions citing financial constraints and the non-availability of a national team coach.
It says in a statement it is "fully aware of the negative implications" but the situation "cannot be avoided looking at the current level of desperation."
FAM General Secretary Alfred Gunda said it would be better to pay the fine than remain in competitions which the country cannot afford.
'If we are avoiding the fines then it means we should have the finances to participate which are much more huge, so with that we will look around and see how best we can pay the fines"
"We may need to negotiate on paying the fines in instalments although we know it will have to be ourselves (FAM) to foot the fines" he said.
Malawi were drawn against Madagascar in their opening match of the 2018 CHAN qualifying campaign which gets underway in April.
They were set to meet the winners of the tie between Comoros and Mauritius at home on 13 June in their first 2019 Africa Cup of Nations qualifier.