The estimated cost of the 2012 Games has hit £525 million, it has been revealed by an Olympics' watchdog.

London Mayor Boris Johnson commissioned the review, which has found that the figure for the 80,000 seat stadium in Statford, east London, had accelerated by £29 million since November.

However, it is reported that an internal review has found that the Olympic budget has risen by only £16m.

Business magnate David Ross will release a report detailing the increased costs this morning.

The budget for the stadium in 2005 was set at £280m in London's 2005 bid document.

-- Advertisement --

However, last November, the budget for the stadium had jumped to £496m.

Mr Ross is expected to warn that "significant additional public sector funding" will be necessary for the Olympic Village.

The report has cited tighter controls on bank lending, increased oil and raw material costs and falling house prices as adding pressure to the cost of the sporting extravaganza.

"In all scenarios some significant additional public sector funding is likely to be required to deliver the project," he said.

Meanwhile, London 2012 has announced a free party for 40,000 people on The Mall marking the moment the UK officially becomes host of the Olympic Games on 24 August.

London 2012 Chair Sebastian Coe said: "In the next four years, there will be a whole host of ways for everyone in the country to be part of 2012, and to make the most of the opportunities London 2012 will provide.

"We want to mark this moment in time - and are creating ways for the UK to come together on this memorable day and celebrate this moment."

See: Olympic Stadium Construction 'Three Months Ahead Of Schedule'

(DS)