President Gianni Infantino backtracked overnight on his investment plan, which was rejected by three continental confederations, with Uefa having warned its nations would boycott Fifa events if it went ahead.
European football governing body Uefa welcomed the decision to drop the proposal, but said it believes the Fifa chief has lost the trust of the football world through his actions.
Mr Burnham was asked on Saturday for his take on the climbdown.
“It’s the right decision”, he told reporters in Manchester.
It comes after he previously called the plans “outrageous” and said bringing them forward made it clear that Mr Infantino was “the wrong man to lead the organisation”.
The Conservatives welcomed the Fifa U-turn, but said the affair has raised questions Mr Infantino’s position.
Shadow culture secretary Nigel Huddleston said: “As Infantino was prepared to entertain this proposal, it raises serious questions about his judgement and his fitness to lead Fifa.”
There was also high-level opposition to the plan within Fifa, with the resignation of Mr Infantino’s senior adviser Carlos Cordeiro and chief operating officer Kevin Lamour, describing it in a statement as “a project of one person”.
Uefa meanwhile described the plan as a “shabby, back room, opaque deal”.
“We cannot keep going on like this with secret schemes on fast-track timescales, cooked up by faceless individuals and of dubious benefit to the game. We must identify those responsible and hold them to account,” the body said after news it had been scrapped.
It said it would work with its associations and other confederations in the coming weeks to “reflect” on how this happened and “devise a plan to make sure that it cannot occur again”.
“That review should be thorough and fundamental. No option should be off the table. The current Fifa leadership has not only lost Uefa’s confidence but also that of many other members of the football family.”
The plan would have seen stakes sold in a company which would run the commercial and operational aspects of competitions, including the men’s and women’s World Cups.
Mr Infantino said early on Saturday that “this proposal will not proceed” after it became clear the project had “created divisions”.
Mr Infantino said in his statement: “Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place.
“Our purpose has always been – and will always be – to unite and improve.
“As a result, this proposal will not proceed.
“Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support.”
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