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Gianni Infantino’s position as Fifa president has been “badly shaken”, according to Uefa vice-president Laura McAllister, after the football governing body chief pulled back from a controversial proposal to sell shares linked to the World Cup.

Infantino changed course after facing strong opposition to the investment plan, which had already been rejected by three continental confederations. Uefa had also warned that its member associations would boycott Fifa events if the proposal was pushed through.

The disputed proposal centred on the sale of stakes in a new company that would have managed the commercial and operational side of major tournaments, including both the men’s and women’s World Cups.

Early on Saturday, Infantino confirmed that “this proposal will not proceed”, admitting that the project had “created divisions” within the organisation.

Greater Manchester mayor Andy Burnham had earlier described the plans as “outrageous”, saying their emergence showed Infantino was “the wrong man to lead the organisation”.

The proposal also prompted serious resistance from within Fifa itself, resulting in the resignations of Infantino’s senior adviser Carlos Cordeiro and chief operating officer Kevin Lamour, who said in a statement that it was “a project of one person”.

It remains uncertain whether Infantino’s U-turn will ease the pressure on his position, with Uefa vice-president Laura McAllister saying Uefa would now be “considering options”.

She did not go so far as to say that the Fifa president should step down over the issue.

Speaking to BBC Radio 4’s Today programme, she said: “It’s not for me to speak for Uefa at this moment in time, but I think trust in the president of Fifa has been badly shaken this week, without a doubt, and I think quite rightly, people will ask questions about whether he is the leader to take us forward as a global football organisation.

“Because we have to stick to the ethical principles of sustainability, fair play, and accessibility to football that really motivate us all. So I think those are the questions that all of us involved in football will be asking now.”

When asked whether she could imagine a situation in which Uefa might back a candidate to challenge him, she said: “I think all of the confederations would be considering options now for sure, and we’ll certainly be doing that in Uefa.

“But you know, it’s a democratic election. If people want to stand, they will, and there will be moves, I’m sure, to encourage people to stand. But I think it’s early days yet.”

She later added: “Interestingly, I don’t think the sport of football is damaged by what’s happened this week. I think Fifa as an organisation, is, and I think the president is.”

Infantino said in his statement: “Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place.

“Our purpose has always been – and will always be – to unite and improve.

“As a result, this proposal will not proceed.

“Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support.”