The cuts are expected to come from all departments in the IAAF, such as spending reductions in travel and phone costs, the ruling Council were today as Diack moved to stem criticism over the world governing body's financial position.

Under a revenue-sharing formula reached this month with other Olympic federations, the IAAF will remain as the undisputed top sport in the money rankings.

It will receive $35.77 million (£24.74 million) from the 2012 London Games, a significant rise on the $29 million (£20 million) it was given after the Beijing Olympics in 2008.

Diack, who has been IAAF President since the death of Primo Nebiolo in 1999, will be hoping that the moves will head off calls from several European federations for him to step down.

Diack, who had promised to stand down in 2011 after being re-elected for a second time in 2007, announced earlier this month that he is planning to put himself forward again at the next election next year.

Among those who have been touted as a possible replacement are Sebastian Coe, the chairman of London 2012, and Sergey Bubka, the 1988 Olympic pole vault champion.

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