The summer meeting often pulls in a capacity 17,500 crowd, but there has been recent concern about the run-down state of London's premier athletics venue.

And Livingstone believes the extra sponsorship from the Greater London Authority will help enhance the quality of this year's event.

If the UK wants to attract major sporting events then it's crucial we continue to attract the world's finest sports people to compete here Ken Livingstone

"I'm delighted to support one of the most prestigious events in the international athletics calendar," he said.

"Watched by a worldwide TV audience, the London Grand Prix acts as an excellent ambassador for our city and for the achievements of the UK's athletes."

The sponsorship comes at a time when a possible 2012 Olympic bid from London is on the horizon.

And Livingstone insists he would want to see the redevelopment of Crystal Palace made a priority as part of the bidding process.

Deadlock

"There is more at stake than just one night of sport," said Livingstone.

"If the UK wants to attract major sporting events - like the Olympics or the World Cup or the World Athletics Championships - then it's crucial that we continue to attract the world's finest sports people to compete here on a regular basis.

"This is an excellent way to develop better relationships with the decision-makers in international sport and the only way to demonstrate what our sporting administrators are capable of."

Livingstone urged local councillors and athletics officials to settle their dispute about who should take prime responsibility for Crystal Palace.

"It is so vital that the current deadlock between Bromley Council and Sport England over the future of Crystal Palace is ended as soon as possible," he said.

"If not there is a real threat the local community will lose a much-needed sports facility - and that athletics in this country will lose its home."