It's evidence of a thawing in the previously frosty relations with the Football Association.
The Goal project funding for the sports science and medical centre was announced by Blatter on a visit to the Football Association's centre in Burton, Staffordshire.
FA chairman David Bernstein, who in 2011 unsuccessfully called for the unopposed election of Blatter to be postponed to allow for a rival to come forward, said the funding reflected better relations between the two organisations.
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 one.
Bernstein said in a statement: "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."
Blatter added: "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."
The FA also announced it will fund bursaries for nine promising international coaches to study for the FA International Licence course under a new scheme.
The FA and FIFA also signed a memorandum of understanding, following similar agreements between the world body and the Spanish and German FAs, agreeing to share skills and knowledge with FIFA member associations.
Jane Bateman, head of international relations at the FA, said: "The FA has a long history of developing football around the world. Like the new memorandum of understanding with FIFA, this bursary project opens our education programmes to the international football community and, in this case, will give a group of international coaches the experience of St George's Park in its inaugural year.
"These coaches come from diverse backgrounds and all have great potential as coaches in their countries. We are proud to be supporting them and to be playing a key part in their development."