UPDATE 1-Olympics-British 2012 soccer team set to be all English

(adds IOC statement)

By Martyn Herman

LONDON, May 29 (Reuters) - Britain will enter a team into the 2012 Olympic soccer tournament but it will only include English players after a compromise between the Scottish, Welsh, Northern Irish and English football associations.

The plan is expected to be ratified by world governing body FIFA at its annual congress next week in the Bahamas although it would also have to be rubber-stamped by the British Olympic Association (BOA), which has always sought a team open to all British players.

A British soccer team has not competed at the Olympics since 1960 but the Government is determined to have one at the London Games even if it is not representative of all the nations that make up the United Kingdom.

Despite assurances from FIFA president Sepp Blatter that their independent status would not be eroded by contributing to a British Olympic team for 2012, Scotland, Wales and Northern Ireland have remained vehemently opposed to taking part.

FIFA set a deadline of May 31 for the four nations to come to an agreement and the Scottish FA is confident that the proposal to have an England team playing under a British banner will be approved.

"FIFA had asked the four associations to find a common solution to the issue of a British team," Scottish FA spokesman Rob Shorthouse said on Friday.

"One thing is absolutely clear, we are completely opposed to the four home associations coming together to play under a unified banner in 2012 or in any other competition. This is a view shared by our colleagues in Wales and Northern Ireland.