Leeds United's efforts to recover from the club's famously-documented financial implosion has been praised by the top official in world football.

Sepp Blatter also cited United's emphasis on developing a youth policy as a "prime example" of how financially-stricken clubs can bounce back to the big time.

Blatter, president of Fifa, world football's governing body, said he and many in the game were "all too aware" of the "unfortunate" demise in the club's fortunes in recent years.

"I well remember Leeds playing in the Champions League semi-final a few years ago," said the Geneva-based Blatter.

"But Leeds United is a club well known throughout Europe for its long and proud history. Indeed, I was among those present at the European Cup final in Paris in 1975 for the game against Bayern Munich."

He said the problem at clubs like Leeds, which have experienced severe financial problems, is akin to "gross financial mismanagement", although he was quick to stress this was a criticism of the club's previous, not current, regime.

"Football clubs are, nowadays, major businesses and, unless they are run properly, they will suffer potentially dire consequences like any other business," he said.

However, Blatter insisted there was "much room for optimism" for the future of the Elland Road outfit, mostly because of the club's emphasis on developing a youth policy.

"Unless you are one of the ultra-rich clubs, this, surely, is the way forward and Leeds, a club I greatly respect, have to be applauded for its efforts in this regard," said Blatter.

Blatter was speaking on 6 October at the European Parliament in Brussels where he took part in a debate with MEPs on the future of professional football in Europe.

He warned that the game is at a crossroads at which the richest clubs would become ever richer at the expense of those without the backing of billionaires prepared to spend their way to success.

He has charged Michel Platini, the president of Uefa, with enforcing stricter licensing rules on ownership, which could mean delving into the backgrounds of potential owners and ensuring they have the cash to support a takeover.

Blatter is lobbying for support for his 'six-plus-five' principle, which would limit a team's foreign players to five.

He likened Leeds' plight to that of the Swiss side FC Thun, a recent Champions League outfit, which was declared bankrupt and now plays in the second tier of the country's league.

* Thanks to political writer and Brussels-based United fan Martin Banks for providing this article.