Cassani quits, Coe steps in

Cassani is understood to have been at a disadvantage because anti-American feeling is running high in the IOC, whose members will vote next year on which city will host the games.

There is growing belief that the animosity towards Americans in some parts of the world after the Iraq war was beginning to count against her.

Coe, now a Lord, faces the massive task of making London favourite to win the games, which can only be achieved by getting a firm commitment from the Government to fix the city's creaking transport infrastructure. The International Olympic Committee has already warned that London would not be awarded the 2012 Games unless dramatic infrastructure improvements are made.

Cassani managed to get London over the first hurdle as an official candidate city with favourite Paris and other contenders New York, Madrid and Moscow.

Insiders said it is not unusual for bidding cities to change major personnel at this stage as there are two distinct phases to the process, the technical phase which culminated in the shortlisting announced yesterday, and then the intense lobbying of IOC members.