John Armitt, Olympic Delivery Authority (ODA) chairman, has for the first time admitted the Olympic athletes village would definitely require additional public funding to cover a shortfall which risks running into tens of millions of pounds.

Armitt told the Guardian: ‘The government at the end of the day will have to come in and support the village [financially] - that is understood. But negotiations are going on at the moment to try and minimise the degree to which further government funding to support the village is required.’

Armitt's admission co-incides with a warning from the National Audit Office (NAO) the existing deal with Lend Lease, the developer in charge of building the £1bn village, could collapse entirely.

The village is the single most expensive element of the Olympic Park construction project, but plans for a public-private partnership between Lend Lease and ODA have been undermined by problems in the banking market, which have made securing loans more difficult.

Further reading:

Olympics village in £200m shortfall

London Olympics bill again under fire

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