The Goal project funding for the sports science and medical centre in Burton was revealed by Blatter on a tour of the FA's flagship coaching and training facility.
FA chairman David Bernstein unsuccessfully called for the unopposed election of Blatter to be postponed in 2011 to allow further time for another candidate to come forward.
There has also been ill feeling in England since the failure of the 2018 World Cup bid which attracted only one FIFA vote apart from the FA's own but Bernstein was keen to emphasise the improving relationship between FIFA and the FA.
"This is fantastic news and reflects FIFA's commitment to raising standards within the game around the world and to our improving relationship with FIFA," he said.
Blatter declared himself pleased to be able to provide financial assistance to St George's Park.
"Protecting the health of players is one of our key objectives and I am therefore very pleased that this project will be dedicated to a sports science and medical centre at such an emblematic location at St George's Park," he said.
The FA also announced it will fund bursaries for nine international coaches to study for the FA International Licence course under a new scheme.