During the Games the distinctive copper-clad Arena will host qualifying games for the handball competition as well as Modern Pentathlon fencing and goalball during the Paralympic Games.

After the Games, the sustainable Arena will become a multi-sports venue with retractable seating for around 6,000 spectators and flexible facilities catering for training and competition at all levels.

It will be able cater for a wide-range of indoor sports including basketball, wheelchair basketball, boxing, handball, badminton, judo, netball, futsal and volleyball, boosting the legacy sporting facilities provided across the Olympic Park

Construction is now underway on the Olympic Stadium, Aquatics Centre, Olympic Village, IBC/MPC, Velodrome as well as roads, bridges and infrastructure right across the Olympic Park.

The sailing facilities at Weymouth and Portland were completed last year and work recently started on the White Water Canoe Centre in Broxbourne.

John Armitt, the chairman of the Olympic Delivery Authority (ODA), said: “The ‘big build’ is on track and the permanent venues that will host a fantastic festival in 2012 and provide a sporting legacy for elite athletes and communities are taking shape.

"The vibrant Handball Arena will provide a great experience for competitors and spectators during the Games and offer a new sustainable and flexible facility for local people to enjoy a wide range of sports in legacy."

Sebastian Coe, the chairman of London 2012, said: “This is another example of the Games acting as a catalyst for change.

"This facility will be a high-quality venue at Games-time but also provides a legacy for sport in London and the UK.

"The fact that Handball will have its own arena at Games-time will be a great boost to the sport in this country, and it will be a much used multi-purpose arena after the Games. It is fantastic to see construction underway at the Arena and on all the venues in the Olympic Park."

Over the coming months around 200 piles will be driven 25 metres into the ground to form the foundations for the venue on track to start coming out of the ground in the Autumn and be completed by summer 2011 ready for test events.

The London Development Agency (LDA) has been leading on the legacy planning for the Handball Arena.

This work, which also includes ongoing discussions with National Governing Bodies for Sport and other sporting bodies, will be taken forward by the new Olympic Park Legacy Company which is due to take over legacy planning later this year.

Peter Rogers, the chief executive of the LDA, said: "The arena will be a major community resource in legacy.

"With the equivalent space of 12 badminton courts and retractable seating, the venue has been designed for all levels of sports participation and has the potential to accommodate cultural, entertainment and business events.

"We are delighted to have reached this milestone and look forward to a smooth transition of the project over to the Olympic Park Legacy Company."

Hackney's Mayor Jules Pipe welcomed the major addition to his Borough's sporting portfolio.

He said: "The new multi-sports venue in Hackney is a great opportunity to offer local residents access to world-class facilities to take part in a wide range of sports, as part of the legacy of the 2012 Games.

"The Council will continue its work to offer all our residents further opportunities to enjoy healthy lifestyles through sport and physical activity."