SIR Steve Redgrave has warned Tony Blair that time is running out for the government to make a decision on whether to support a London bid for the 2012 Olympic Games.

Blair and his ministers are weighing up the implications of backing a bid following the publication of an official report into the costs and benefits of staging the Games.

The study, by Arup consultants, was published on Friday, nearly a year after they were appointed by the British Olympic Association, the mayor of London, Ken Livingstone, and the government. Interested cities do not have to submit an official application to the International Olympic Committee until next July, but a decision by Blair is expected in January.

The report estimates the cost of staging the Games at almost £2 billion, and some ministers are worried about a repeat of previous fiascos such as the Millennium Dome and the Wembley stadium. Bidding alone will cost £13m.

But Redgrave, five times an Olympic gold medallist, says the government must make up its mind fast, or risk losing out on one of Britain’s best chances of hosting the Olympics for the first time since 1948. “I think the bid is something we should be going for, but time is drifting away from us very, very quickly,” he said. “There is still time to put a very strong bid together. However, I would like to see more urgency with the whole task. We have been in talks for well over a year now. We are getting there, but we are getting there too slowly.

“The problem for the government is it has projects like the Dome, Wembley and Picketts Lock looming over it. The idea of going into another huge project like this — and it’s not just one stadium or one site — is a huge undertaking. There are a lot of questions to be answered and a lot of problems to overcome, it’s not going to be an easy path at all. But we need to take it as far as we can.”

If London does bid, Redgrave, Britain’s greatest Olympic athlete, is certain to play a key role in trying to win the race, which ends in 2005. He has been asked to work as an ambassador for the campaign and will carry a lot of international influence in a battle that could see London facing rival bids from Paris, Moscow, Toronto and San Francisco.

Redgrave believes the success of last summer’s Commonwealth Games in Manchester has given the London Olympic bid a huge boost on the world stage. “It’s something I’m sure the British people would support, provided it’s structured properly,” he said.

Before that, however, Blair must persuade his chancellor, Gordon Brown, to spend the money. The Arup study reckons the cost to the government would be £494m.