Carillion has emerged as the frontrunner to build the Olympic velodrome.

Alfred McAlpine, which Carillion bought for £554m in February, is understood to have surged ahead of shortlisted rivals ISG InteriorExterior and Spanish contractor FCC to bag the last of the “big four” 2012 venues.

Sources close to the bidding said the contractor was on the verge of signing a contract with the Olympic Delivery Authority (ODA). If Carillion does close it, it will mean it is likely to build two Olympic venues, as it is already in final stage negotiations over the £400m media centre.

It will also mean that all of the main venues are being built by British contractors, despite several large foreign firms such as Bouygues and Hochtief bidding for work.

The bid price for the 6,000-seat velodrome was originally £40m but the agreed price is likely to be much higher.

Designed by Hopkins Architects and Expedition Engineering, the venue will host indoor cycling events, and will be built at the north of the Olympic park. Construction is set to start early next year.

The velodrome is the smallest of the four main Olympic venues.

The other three are the stadium, under construction by Sir Robert McAlpine, the aquatics centre, for which Balfour Beatty is on the verge of signing a contract and the media centre, which Carillion is understood to have won.

A spokesperson for the ODA said: “The procurement of the velodrome contract is not yet concluded and we are continuing to evaluate tenders from three world-class teams with a contract award expected in the coming weeks.”

Brits beat foreign firms to the gold

  • Sir Robert McAlpine will build the £460m Olympic stadium
  • Carillion is preferred bidder for the £400m media centre. After buying Alfred McAlpine it is likely to build the £40m velodrome, too
  • Balfour Beatty is likely to win the £200m aquatics centre within weeks. It has also won contracts for rail and stadium bridges
  • French contractor Bouygues bid for the Olympic village and the media centre, but came second in both
  • US engineer Bechtel’s experience as delivery partner at five Games was ignored in favour of consortium CLM, which includes two UK firms
  • Spanish contractor FCC was shortlisted for the velodrome. Hochtief of Germany and Eiffel of France bid for the aquatics centre.