UK newspaper The Guardian reports that the FA believed it had an agreement with its Spanish counterparts that neither would use the match as an opportunity to showcase the bids.
But Madrid organisers have bought advertising space on boards around the stadium.
Spanish FA officials claim there is nothing they can do because a private third-party company is in charge of advertising space at the match.
"Ultimately it's a matter for the Spanish FA and the Madrid bid," said Mike Lee, the spokesman for London 2012, "but in our view it may be within the letter of the rules but not in the spirit".
