But there was embarrassment when UK Athletics denied that they were set to move their administration offices there.

The work at Alexander Stadium, which hosted Britain's Olympic trials in 2008, will include a new 5,000 seater stand, taking the capacity to 12,800 with scopre for temporary seating subject to demand.

It is hoped that the work can be completed before London 2012 when Birmingham is due to host training camps for two of the world's leading athletics countries, the United States and Jamaica, including triple Olympic champion Usain Bolt. 

"This exciting project will further enhance Birmingham’s deserved reputation as Britain’s sporting city, bringing jobs to the city and enhancing our facilities," said Mike Whitby, the Leader of Birmingham City Council.

"We play host to gold medal hopefuls from the USA and Jamaica ahead of the 2012 Olympic Games and, to build on that success, we need the facilities required for the world’s best athletes to compete here on a regular basis.

"That’s exactly what this project will achieve and we’re once again showing Birmingham has the commitment needed to be a significant player in world sport."

Alexander Stadium, which is located in Perry Barr, was opened in 1976 and has several major events.

The new scheme will be self-financing, it is claimed by Martin Mullaney, the Cabinet Member for Leisure, Sport and Culture, partly through new office space of up to 250 people, including UK Athletics.

Mullaney told Birmingham City Council's Cabinet that they already had signed a Memorandum of Understanding  (MoU) with UK Athletics for them to relocate from their current headquarters in Solihull. 

But this was denied by UK Athletics, who admitted that they had been in discussions with Birmingham but also revealed that they were considering an offer to move into the Olympic Stadium after London 2012 when the lease on their headquarters expires in two years.

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