The attorney general’s office said he was being investigated «on suspicion of criminal mismanagement as well as – alternatively – on suspicion of misappropriation».
Mr Blatter was being questioned, and his office was searched, it added.
Fifa said it was co-operating with the investigation.
Mr Blatter, 79, has run Fifa since 1998 and has always denied any wrongdoing.
‘Disloyal payment’
The Swiss attorney general’s office said the investigation surrounds a TV rights deal Mr Blatter signed with former Caribbean football chief Jack Warner in 2005.
Mr Blatter is also suspected of making a «disloyal payment» of two million Swiss francs ($2m; £1.3m) in 2011 to UEFA president Michel Platini, the statement said. Mr Platini is widely expected to replace Mr Blatter when he steps down in February.
It said the payment was «at the expense of Fifa, which was allegedly made for work performed between January 1999 and June 2002».
bbc.com
La fiscalia general Suiza anuncio que se abrio investigación por sospechas de accciones criminales contra el Presidente de FIFA Josep Blatter…especificamente por mala gestion desde lo penal y apropiacion indebida…
El señor Blatter fue entrevistado este viernes en sus oficinas de Zurich y la fiscalia anuncio que la entidad que rige el futbol en el mundony su maximo gerarca estan colaborando…
El fiscal general de Suiza dijo que las investigaciones tienen que ver con los derechos de televisión que Blatter firmo y negocio con el Ex-presidente de concacaf y Ex-vicepresidente de FIFA Jack Warner en el 2005…
Josep Blatter es sospechoso ademas ,de haber hecho lo que califican como «Pago desleal» por 2 millones de francos Suizos en el 2011 al Presidente de la UEFA Michel Platini…y en lo que fifa califica como pagos por trabajos realizados entre enero de 1999 y junio del 2002…