Charles Kennedy has thrown his weight behind the idea of the Olympic Games being hosted in London in 2012.

The Liberal Democrats leader, who has admitted not being much of a sportsman himself, says bringing the event to the capital would mean much-needed regeneration for the east of the city.

A successful bid would mean much-needed regeneration for a large part of east London

Charles Kennedy

Mr Kennedy's public support for a London bid will put pressure on the government to decide whether it can go ahead next year.

The prime minister is expected to make an announcement in January, following consultation with colleagues, including Chancellor Gordon Brown and Culture Secretary Tessa Jowell.

Olympic village

The government says a decision on whether or not to launch a bid will be "a matter principally" for the British Olympics Association (BOA), which has already said that the bid should be based on hosting the games in London.

'Public transport in London will need to improve to support its Olympics bid'

Consultants Arup put the cost of staging the event at �1.8bn, but with profits of about �79m.

London's bid would be based around a new athletics stadium, track and Olympic village for 4,000 participants in Stratford, near Hackney.

But Mr Kennedy warned that public transport would need to be "vastly improved" for it to succeed.

"I am delighted to be able to give Liberal Democrat backing to the campaign to bring the Olympics to this country in 2012," he said.

"A successful bid would mean much-needed regeneration for a large part of east London - one of the most deprived areas in the whole of Britain.

"But in order for any bid to succeed, public transport will have to be vastly improved.

"Tony Blair, Gordon Brown and [London mayor] Ken Livingstone must put aside their differences and start working together to ensure that this happens."

'Business acumen'

Mr Kennedy used the opportunity to name Carshalton and Wallington MP Tom Brake as his party's spokesman on London.

Mr Brake said: "This could possibly be London's only opportunity to bid for the Olympics.

"London has the entrepreneurial skills and business acumen to make the games a success."

Mr Livingstone is behind the bid, which he hopes will help him secure transport improvements, including the long-awaited Crossrail scheme.

The chances of London staging the Games were given a significant boost when Beijing won the race to host the event in 2008.

Cost to the taxpayer

It is now far more likely that the International Olympic Committee will consider a European city for 2012.

But London is likely to face competition from Toronto, Rome, New York, Moscow, Paris and Berlin.

Some of the events would be staged outside the capital with some football matches taking place in Scotland, Wales and Northern Ireland.

The bid alone is expected to cost millions, with half coming from taxpayers and the other half from sponsorship.

Mr Blair is expected to listen to reports from Tessa Jowell and Sports Minister Richard Caborn, who are looking at past host cities, including Sydney, Moscow and Barcelona.

Britain's reputation in world sport suffered a serious setback last year when London lost the right to stage the 2005 world athletics championships because the capital would not have a new stadium in place in time for the event.

The 2005 championships were seen as crucial because they are due to take place just a few months before the International Olympic Committee (IOC) decides on the venue of the 2012 summer games.