The SFA says it is “optimistic” that FIFA will allow Scotland and England players to wear the poppy when the Auld Enemy meet at Wembley on November 11.
A report in the Sun claimed FIFA had banned the two teams from displaying poppies on their shirts during the World Cup qualifier as political statements are not allowed.
But the SFA and English FA say they are talking with FIFA to ensure permission is granted.
An SFA spokesman told Press Association Sport: “We are also in dialogue with our colleagues at the FA and with FIFA and are optimistic of an outcome that enables both teams and their respective fans to pay appropriate respect on Armistice Day.”
In 2011, following negotiations with FIFA, Scotland, who will be wearing their pink away strip at Wembley, were allowed to wear armbands emblazoned with a poppy emblem in the 2-1 away win over Cyprus.
An English FA statement read: “We are working closely with the Royal British Legion once again this year to honour and remember the sacrifices made by those serving in the armed forces.
“In recent weeks, the FA has led remembrance discussions with FIFA to allow the England team to show its support for the poppy appeal during the World Cup qualifier with Scotland.”
In 2011, FIFA eventually backed down after threatening to ban the England team from wearing poppies in a friendly against Spain, allowing them to display the symbol on black armbands.