The third-placed team will earn $2.27 million with $2.25 million going to the fourth-placed team. The teams ranked fifth to eighth will each receive $1.4 million.
The prize money reflects the importance of the event, which is seen as a test run for the World Cup itself.
"The Fifa Confederations Cup is first and foremost a top football event as it pits the champions of all six confederations, the current world champions and the host country South Africa against each other. At the same time, it is an ideal test run for the organisers of the 2010 Fifa World Cup in terms of infrastructure, logistics and services. As in Germany in 2005, we are looking forward to a festival of champions and thrilling matches,” Fifa President, Sepp Blatter, said.
The committee took note that the competition is intended to be played at the five venues of Johannesburg (Ellis Park), Rustenburg, Mangaung/Bloemfontein, Tshwane/Pretoria and Nelson Mandela Bay/Port Elizabeth.
A decision over the availability of the Port Elizabeth stadium will be taken on 29 April.
