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Tevez is keen to move to Old Trafford
Fifa has recommended that the Carlos Tevez dispute should go to the Court of Arbitration for Sport.
The Argentine striker wants to join Manchester United, but West Ham and businessman Kia Joorabchian both claim to own the player.
The Football Association and the Premier League asked Fifa to rule on the matter.
But a Fifa statement read: "Fifa has recommended that West Ham and Carlos Tevez seek arbitration at CAS."
It continued: "Under the present circumstances this was deemed to be the best approach and in the interest of all parties.
"What is more, we also believe this to be the fastest way to solve this impasse."
CAS is yet to comment on whether it will hear the case, but BBC Sport understands Joorabchian is considering taking the matter to the High Court in order to push through a deal before the transfer window closes on 31 August.
United are expected to pay up to £30m for Tevez, but the transfer has reached an impasse over who should receive the fee.
Tevez is registered as a West Ham player, but Joorabchian claims he still owns the striker's economic rights and is therefore entitled to the transfer fee.
However, West Ham ripped up an agreement they had with Joorabchian - which broke Premier League rules - and they now claim any deal with United can only go ahead with their say-so.
The Premier League, which is also insisting that any fee must go to West Ham, met with Fifa and the Football Association on Monday to discuss the issue.
Fifa spokesman Andreas Herren said: "Under the circumstances it was felt it would be in the best interest of all parties to take this course.
"It looks like being the fastest way of resolving this matter.
"It is not a refusal by Fifa to get involved, quite the contrary. It is a recommendation by Fifa to opt for this way."
The Premier League welcomed Fifa's decision.
A spokesman said: "The Premier League and FA are grateful to Fifa for considering this issue.
"We are supportive of the recommendation that if all parties are in agreement the matter should be referred to the Court of Arbitration for Sport."
West Ham also said they were happy for CAS to rule on the issue. "We're happy for the matter to go to CAS if it is with the agreement of all parties," a West Ham statement said.
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