The dispute now looks set to be decided by the Court of Arbitration for Sport (CAS).

The BOA has recently disputed the Joint Marketing Agreement and is currently calculating how much surplus it will be allowed after 2012.

But the IOC has backed the position of London 2012 as they believe the deal it struck with the BOA in 2004 is fair.

"The IOC was asked to reach a final and binding decision on how the surplus of the Games should be defined," an IOC statement said.

"Having studied the documents and the recent past history of the Games bidding process, we have decided that the word 'surplus' clearly represents the financial results from the staging of the Olympic Games and the Paralympic Games combined.

"The IOC would like to see a swift resolution to this dispute to allow all parties to concentrate on delivering what will be outstanding Games in London next year."

A London 2012 statement added: "This is a narrow technical point which does not affect the staging of the Games next year nor the preparations of the British athletes.

"We are pleased the IOC has ruled on this technical point confirming we should continue to determine any surplus on the basis of combined costs and revenues from both the Olympic and Paralympic Games.

"Now this is settled we look forward to moving ahead together with the BOA to realise our shared vision of hosting a spectacular Olympic and Paralympic Games."

But despite the ruling, the increasingly ugly row looks set to continue as the BOA will now press ahead with their plan to take the matter to CAS.

The unprecedented decision to take the matter to sport's highest court is because the BOA said in a statement that "decisions made by CAS are final and binding."

The BOA filed a formal petition with the CAS last week before the IOC decision was announced but the case could potentially take several months before it is finally resolved.

It is anticipated that the cost of hosting the Paralympics could be up to £400 million ($648 million) which will eat into the profits due to the BOA, who will get 20 per cent of any surplus.

As far as the IOC is concerned, the two Games are tied together but it appears as though the CAS will have the final say on the matter.

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