Olympic organising body rejects reports that Barclays and European Investment Bank are preparing to lend £500m to 2012 scheme

Olympic organisers have claimed the funding package for the 2012 athletes’ village has not changed since last month despite reports private sector investment has increased to £500m.

A deal to finance the affordable housing element of the project, which includes finance from a banking consortium, is thought to be nearing sign off. Reports have claimed Barclays and the European Investment Bank are preparing to lend £500m to the project but the Olympic Delivery Authority denied this.

A spokesperson said: “Last month we announced that the funding for the Olympic village was in place and that this included £268m for the affordable housing element made up of grant from the Homes and Communities Agency and finance from a private sector banking consortium, including EIB.

“This situation has not changed and an announcement finalising the arrangements will be made shortly.”

Two weeks ago, the government announced that the Olympic village would be funded entirely by the public purse after rejecting a £375m investment package from developer Lend Lease and its banks.