The Irish Football Association claims FIFA's Fair Play prize is recognition of how the game has helped bring Catholics and Protestants together in Northern Ireland.
Northern Ireland shares the 1998 award with Iran and the USA and in particular FIFA was pleased by Irish League side Linfield's return to Cliftonville's Solitude ground after 28 years.
The security forces had not allowed Linfield, whose supporters are exclusively Protestant, to play at the home of their Belfast rivals, who are predominantly Catholic, because of the Troubles.
But with the easing of tension in Northern Ireland, Linfield were allowed back last November and the game, which was drawn 1-1, passed off without incident.
A FIFA spokesman said: "The award is in recognition of the part football has played in improving society as a whole. In the case of Northern Ireland, it is for the match between Linfield and Cliftonville last year.
"That game demonstrated how football can help break down the barriers between Catholics and Protestants in Northern Ireland."
IFA spokesman John Quinn claimed the prize recognised the cross-community work the association has been carrying out during the troubles.
"In the broadest terms, this award recognises the work of the IFA over the last 30 years in developing closer community relations." Meanwhile, Gerard Houllier unveiled Liverpool's new £10 million-plus youth academy yesterday. Houllier, Liverpool chief executive Rick Parry and academy director and former Republic of Ireland international Steve Heighway joined forces to pay tribute to the new academy, the first of its kind in Britain and the biggest in Europe.
An indoor sports hall and a residential hotel are still to be built at the 45-acre site that has 10 pitches, state of the art coaching and technical and teaching equipment.
Rob Jones accepts his Liverpool career is over but he won't be rushed into making a decision about his future. The Liverpool player is being chased by West Ham, Arsenal and Rangers and says he wants to talk to them all, although he favours joining the Hammers.
Newcastle United are remaining tight-lipped over reports that they have launched a £4 million bid to bring Nigerian midfielder Taribo West to St James' Park.
Chairman Freddy Shepherd and chief executive Freddie Fletcher were abroad yesterday as speculation pointed the finger at the 24-year-old Inter Milan star.
West Ham manager Redknapp has ruled out a buying Newcastle midfielder Robert Lee - because he refuses to pay £2 million for a 32-year-old. Redknapp is trying to spend the £7.5 million he raised from last week's sale of John Hartson to Wimbledon.
England youth coach Howard Wilkinson has ruled out 28 first choice players from his plans for the forthcoming world under-20 tournament in Nigeria to ward off expected opposition from clubs.
Wilkinson's decision means the likes of Michael Owen, Gareth Barry, Alan Smith, Jonathan Woodgate, Jody Morris, Joe Cole and Wes Brown will now almost certainly not have to miss vital end of season domestic games.
