London lifted by New York shock

London's bid for the 2012 Olympics could be boosted by the withdrawal of one of the city's main rivals after New York was hit by a new blow over their showpiece stadium

New York leaders were today deciding whether to pull out of the vote in Singapore on 6 July after the city's authorities blocked funding plans for the stadium to be built near Madison Square Gardens in Manhattan.

Two of three members of the New York state public authorities control board abstained in a vote yesterday to approve £164 million of funding for the new £1.2billion arena, which was to host the opening and closing ceremonies as well as the athletics.

The decision has left the bid in tatters and New York knows International Olympic Committee members would find it impossible to back a candidate city with no concrete plans for a stadium in place.

The IOC may even decide not to put New York's bid to the vote because they have failed to deliver on their bid pledges.

That could be good news for London as it is expected that New York's supporters will switch to support London, a move which could give us the edge over favourites Paris.