The equations of motion of quantum Yang–Mills theory (in the planar "large-N" limit), when formulated in loop-space are shown to have an anomalous term, which makes them analogous to the equations of motion of WZW models. The anomaly is the Jacobian of the change of variables from the usual ones, i.e. the connection one-form A, to the holonomy U. An infinite-dimensional Lie algebra related to this change of variables (the Lie algebra of loop substitutions) is developed, and the anomaly is interpreted as an element of the first cohomology of this Lie algebra. The Migdal–Makeenko equations are shown to be the condition for the invariance of the Yang–Mills generating functional Z under the action of the generators of this Lie algebra. Connections of this formalism to the collective field approach of Jevicki and Sakita are also discussed.