Radcliffe will be joined on the Prize Money Working Group by The Bahamas' Pauline Davis, a three-time Olympic medallist, including two gold. 

The Group, chaired by Ireland's Pierce O'Callaghan, was set up following the conclusion of the IAAF's two-day Council meeting here. 

It will analyse how prize money is distributed at major athletics events. 

The IAAF awarded $7,194,000 (£5,753,124/€6,775,260) in prize money at its last World Championships in Beijing two years ago and is expected to offer at least the same again in London this year.

"It's about what happens in the different areas of the sport and to look at the re-balancing of the prize money across the different competitions," IAAF chief executive Olivier Gers told insidethegames 

"It's quite wide-ranging and will try to bring some sanity to the subject.

"It is about trying to make sense of prize money in our sport."

The Working Group, which also includes IAAF treasurer José Maria Odriozola, is expected to investigate how athletes cheated out of prize money by drugs cheats should be compensated.

The 43-year-old Radcliffe, the vice chair of the IAAF Athletes' Commission, who retired two years ago, has been an outspoken critics of athletes caught using drugs and earlier this week claimed that doping should be made a criminal offence. 

Under the current system, athletes are not paid prize money owed for positions they are promoted to until the disqualified athletes have reimbursed their initial payments.

Their only incentive for enforcing this is extending an athletes' suspension so, if they have no interest in returning to competition, it is very difficult to enforce in the current system.

Ireland's Olive Loughnane is among those still owed prize money for her gold medal in the 20 kilometres walk at the 2009 World Championships in Berlin.

Russian winner Olga Kaniskina has been stripped of her initial victory but is thought to have not yet repaid the money owed. 

Another Russian, Liliya Shobukhova, has been ordered by a court in Britain to repay £377,961.62 (£472,591.58/€445,147.25) plus costs to the London Marathon, the prize and appearance money she received for the 2010 and 2011 races, including winning the first one. 

All of Shobukhova's results since October 2009 were annulled in 2013 because of abnormalities in her athlete biological passport and she was banned for more than two-years.

"The Group will look at what happens when an athlete gets demoted and the money needs to be re-assigned," said Gers. 

Other members of the panel will include Paul Hardy, the IAAF competitions director, and Duffy Mahoney, chief of sport performance at USA Track & Field.

The Group are expected to meet this summer and present a report and recommendations later this year.