About 5,000 homes in central London's West End will have the blue bag scheme.

Westminster City Council said the area is full of mansion blocks, housing estates and homes above shops making it hard to offer the service.

The move comes as the council is set to announce a recycling lottery giving 30 residents the chance to win �50 every three months.

Residents have to put their name and address on the bag which is then entered into a draw.

People living in the borough currently recycle 18% of household rubbish, which is in line with current government targets for 2006.

Last week, it was reported that Mayor of London Ken Livingstone is set to take over control of waste in London and may force local authorities to dispose of more waste locally, rather than in landfill sites outside the city.

He also wants 300 recycling centres in London and aims to introduce techniques like composting and alternative waste treatment strategies.