Lottery chiefs were furious last night on learning that they will have to fund nearly £700 million of the £2 billion shortfall on the 2012 Olympic Games.

Sir Clive Booth, chairman of the Big Lottery Fund, said charities and voluntary groups would be “bitterly disappointed” that money for good causes would need to be diverted to the Games.

Tessa Jowell, the Culture Secretary, is today expected to publish the full cost of the 2012 Olympics, said to be nearly £9billion, three times the original amount. The breakdown includes about £5 billion for the Olympic park, £250 million for VAT, over £400 million for site security and up to £3 billion in a contingency fund. Final security costs for policing the Games in 2012 will not be included in today’s breakdown.

But the Treasury was still said to be in negotiations with the Department for Culture, Media and Sport last night about the final details and how the shortfall would be split. Whitehall sources confirmed that the National Lottery will have to fund at least £700 million of the shortfall with the Big Lottery Fund, which receives 14p from every ticket for education, environment and health projects, having to find more than half. The rest of the shortfall will be split between Whitehall and the London Development Agency, which is responsible for buying up the site.

Yesterday Lord Coe, chairman of the London Organising Committee of the Olympic Games, said that Lloyds TSB had become the first big sponsor of the 2012 Games, with a deal worth £80 million.

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