London 2012 commercial director Chris Townsend said: "We are delighted Merrythought is on board to produce this exclusive range of memorabilia.

"To us there was no question that the great British teddy bear could become a symbol to mark London 2012."

Merrythought bears are one of the most prestigious and oldest established English toy makers and have been hand-making teddy bears at its former foundry base in Ironbridge for 80 years.

The company's first products were based on designs by a former employee of Chad Valley but perhaps their most famous individual bear to date was "Mr Whoppit" who was the mascot of land and water speed record breaker Donald Campbell.

The company ceased manufacture on November 27, 2006, blaming "the ongoing effects of external economics" and specifically cheap foreign-produced goods with which Merrythought could not compete.

However on May 1, 2007, Oliver Holmes, grandson of founder Gordon Holmes announced that due to huge media outcry and the tremendous following for the Merrythought products, that there would be a 2007 catalogue albeit with a "much sharper, collector-focused group of products," still manufactured in the original factory.

Since then, the company has flourished once again and Merrythought marketing director Sarah Holmes, the daughter of Oliver Holmes, has hailed securing the contract to make the official range of commemorative bears for London 2012 is perhaps the toy manufactures' finest hour.

"When the Olympics people approached us, at first we rather thought it was probably more suitable to a mass-producer in the Far East," she said.

"But London 2012 were very keen that the bear should be made in the UK.

"We will start off with a run of 2,012, to be launched around Easter.

"It should retail for about £69.95 ($113.35).

"There isn't a name for the bear yet, but I understand the London 2012 people may decide to run a competition to come up with a name."

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