The report will look in closer detail at how hosting the games could work.

It will consider the kinds of venues and transport links required, how different cities could share the games, how communities could benefit.

Crucially it will also examine how much it could cost as well as assess the chances of a bid succeeding. The Conservative-Lib Dem coalition government said in 2013 it estimated hosting in London had cost £8.9bn.

A report in 2013 by the UK Trade and Investment, which has since been replaced by the Department for International Trade, said it had sparked a £9.9bn boost to the economy through new contracts, sales and foreign investments.

But the estimated amount was queried by some, including the Federation of Small Businesses and the National Institute of Economic and Social Research (NIESR) .

Conservative shadow sports minister Louie French said that while hosting an Olympic Games would "likely provide a positive boost for the country", the cost of proposals would require "careful…