Sydney gold medallist Jason Queally looks unlikely to be given the chance to defend his Olympic title in Athens. Queally won the first of Britain's 11 golds four years ago with victory in the one-kilometre track cycling event.
But world champion Chris Hoy and fellow Scot Craig MacLean are in pole position to fill the two 1km places.
"It's fair to say Chris is leading the way and Craig is running second, but it is all there to fight for," said GB programme director David Brailsford.
"My task is to make sure we get the fastest guy on the line on the day and we will be looking very closely at the situation."
Queally stunned the cycling world in Sydney by upstaging highly-fancied competitors Arnaud Tournant of France and Australia's Shane Kelly to win gold.
His time of one minute 1.609 seconds was a new Olympic record.
But Hoy will be favourite for 1km gold in Athens after setting a personal best of 1:01.599 on his way to victory at the World Track Championships in Melbourne last month.
And MacLean's impressive recent form means Queally looks set to have to compete for one of three places in Britain's team sprint line-up.
Queally, Hoy and MacLean won silver in the team sprint in Sydney, but Jamie Staff got the nod ahead of Queally when Britain raced off to win world bronze last month.
Staff followed up that success by winning the world Keirin title as Britain claimed two golds, two silvers and a bronze in Melbourne.
"It's a great position to be in," said Brailsford.
"To have four world-class athletes in the team is phenomenal, and it is better to have four than three because they compete for three spots in the team sprint."
 | I believe the team spirit, morale and resolve in the British cycling team at the moment is second to none  |
Britain's 21-strong cycling team will go to Athens under pressure to build on the successes of Sydney.
GB came home with Queally's gold, the team sprint silver, and bronzes for Yvonne McGregor in the women's 3km pursuit and the men's 4km pursuit team.
Brailsford said "two or three medals" would be a satisfactory haul in Athens.
But he warned: "The margin between a podium place and fourth to sixth is getting narrower all the time.
"I'm responsible for developing cycling at elite level and I wouldn't have done my job if we weren't better prepared than we were for Sydney.
"Across the whole range of cycling disciplines we can go to Athens with high hopes.
"We have an attitude that we refuse to lose and I believe the team spirit, morale and resolve in the British cycling team at the moment is second to none."