Earlier this month, the 79-year-old head of the international footballing body said he would be resigning amid claims of bribery and corruption within his organisation.
His announcement - which came just four days after being re-elected as Fifa president for a fifth consecutive term - followed a number of arrests of Fifa officials in Zurich by the Federal Bureau of Investigation.
Sepp Blatter now says he is not standing down as Fifa president
However, according to Swiss newspaper Blick, Blatter told a party at a Fifa museum: "I did not resign. I put myself and my office in the hands of the Fifa congress."
Blatter continued: "Only those who know the past can understand the present and shape the future.
"Or in other words: the ball is round – but only those who come from outer space know the actual dimensions of our sport."
The paper said Blatter had spoken on Thursday at his first public appearance since announcing his resignation as Fifa president.
During Blatter's resignation speech on June 2, the Fifa boss said: "I have been reflecting deeply about my presidency and about the 40 years in which my life has been inextricably bound to Fifa and the great sport of football.
"I cherish Fifa more than anything and I want to do only what is best for Fifa and for football.
"I felt compelled to stand for re-election, as I believed that this was the best thing for the organisation. That election is over but Fifa’s challenges are not. Fifa needs a profound overhaul."
But this latest news has led to more confusion about just what is going on at Fifa.
There is no doubt that the organisation is under increasing pressure to restructure after a series of public humiliations.
Fifa's director of communications resigned earlier this month after making an ill-judged joke during an appearance Swiss television.
The week before Walter De Gregorio's resignation, Fifa's headquarters in Zurich were searched by police.
In addition to this, two former senior Fifa officials, Jack Warner and Chuck Blazer made allegations against the footballing body, with the former warning there was still an "avalanche" of evidence to come.
People were just as confused at the news as we were.
- A Fifa Official Has Been Forced To Resign After Making This Joke On TV
- Now Fifa Headquarters Are Being Searched By The Police
- Top Fifa Insider Admits 'Huge New Corruption Scandal'
- Former Fifa Vice President Fears For His Life And Promises 'Avalanche' Of Evidence To Come
- Sepp Blatter Announces He Will Stand Down As Fifa President
- Gary Lineker And Greg Dyke Lead Jubilation Over Blatter's Resignation
- Concacaf Boss Banned From Football By Fifa Ethics Board
- Ex-Fifa Official Cites Spoof Article To Defend Himself From Prosecution
- World Cup Bribery Allegations Are 'Ugly' Racism Says Former Qatar PM
- Andy Burnham Says England Should Boycott World Cup In Russia