The area will have more than 10,000 homes

He has warned that he will veto the deal unless 50% of the homes to be built beside it are offered for cheap rent or sale.

The current proposals include 35% designated being used for use by key workers, such as teachers and policemen, in London.

The government is hoping that the sale will make �550million to be spent tackling housing problems in the north of England.

But Mr Livingstone is determined that London and the Thames Gateway should be the main beneficiaries - and that the site should provide at least 5,000 cheap homes rather than the 3,500 the deal with developer Meridian Delta specifies.

Meridian Delta director Bert Martin said today: ""We believe the proposals provide the opportunity to create a new urban community for Greenwich and London, delivering a comprehensive sustainable regeneration, integrated with high quality public spaces and a world class entertainment and sporting destination at the Dome."

Regeneration project

Under the plans, the Dome would become "Europe's premier multi-purpose entertainment and sports venue" and conference centre.

The 10,010 homes would be built in four residential areas on adjacent land.

The mayor has written to local London Borough of Greenwich's planning committee saying he is "minded to direct refusal" of the plans if the council approves the scheme as it stands.

Mr Livingstone has the power to reject planning applications on projects that have London-wide implications.

Regeneration project

Greenwich Council leader Chris Roberts said: "The council is determined to ensure that all local residents benefit from the new scheme."

The work on the Dome, which endured a troubled 12 months during its opening to the public during millennium year, is just part of a 20-year regeneration of the Greenwich peninsula.

Recent government figures have shown that the bill simply for keeping the Dome empty since July 2001 has risen to �22.9m.

The development could bring 24,000 long-term jobs to the area.

Sports events

The application has been submitted by government regeneration agency English Partnerships - which owns the Dome land, property consortium Meridian Delta Ltd(MDL) and sports and entertainment company Anschutz Entertainment Group Europe

The first work in the regeneration scheme will be the 24-month construction of the central area of the Dome at a cost of �135m.

A further �65m will be spent on a 62,000 square metre entertainment and leisure space area inside the Dome which will include bars and restaurants.

The central Dome arena will host about 150 events a year, although this could rise to 200.

They will include concerts, family shows, sports events, award shows and conventions.

The arena will have its own roof under the Dome's canopy designed to stop the noise of rock and pop concerts escaping.