The International Olympic Committee has suspended its recognition of SportAccord, the umbrella body that represents Olympic and non-Olympic federations.
The move comes after SportAccord President Marius Vizer attacked the IOC's leadership over international sports federations at a meeting in Sochi back in April.
He accused the IOC of being outdated and lacking transparency.
More than two dozen federations have withdrawn or suspended ties with SportAccord following his outburst.
Vizer himself has since resigned, leaving SportAccord's future in doubt.
Mark Adams, the IOC director of communications, says the IOC will stop offering funding for SportAccord until it completes a re-organization.
"Like many members of SportAccord we are suspending our recognition of SportAccord and we will withhold our funding until these questions are answered and an agreement between the stakeholders has been reached."
The IOC says it provides about 300,000 US dollars annually to SportAccord, including 160,000 for anti-doping programs.
The committee has promised to step in to provide the anti-doping services that some federations had received from SportAccord.
The IOC is holding a two-day meeting in Lausanne.
On Tuesday, the full IOC will gather at the Olympic Museum to hear technical presentations from the two bid cities for the 2022 Winter Olympics – Almaty, Kazakhstan and Beijing, China.
