London Olympic bid rests on Blair

Tony Blair's fears of losing out to French rivals in the contest to host the 2012 Olympics have pushed back a Government decision on the proposed London bid.

Although extensive work behind the scenes suggests a bid for the prestigious Games is likely, and the International Olympic Committee's deadline is 15 July, the Prime Minister is thought to have got "cold feet" about the idea.

He is worried that stiff competition from New York, Leipzig in Germany, Madrid, Moscow and Paris will see off a British bid. The Cabinet meeting to decide whether London will throw its hat in the ring has been put back from 15 May to allow Mr Blair time for reflection.

Meanwhile, however, advocates of the London bid – which would cost £30m – have already started work. The London Development Agency is in the process of buying land in the area earmarked for the Olympic site, part of the Lee Valley. Emails have been sent around Whitehall to sound out civil servants who might be keen to take a secondment with a bid company.

The Deputy Prime Minister, John Prescott, who is to head the Cabinet committee on the Olympics, is understood to be determined the bid will go ahead.

But the whole thing rests on Tony Blair. "The private speculation is that No 10 needs good news and high-profile good news about Britain on the international stage following the Iraq war," a Whitehall source said. "The Prime Minister genuinely hasn't made his mind up yet."