The Independent claims that deal worth an estimated £80 million is being negotiated, although an announcement is not due until after Easter, possibly to avoid gatecrashing the publicity for Lloyds TSB which was unveiled as the first 2012 sponsor two weeks ago.

 

BT is being challenged in the telecommunications sector by Vodafone but is the most likely backer since it was a "premium partner" of the London Olympics bid and is believed to be supplying the wireless networking for the 2012 Games.

 

"It looks a done deal but it is in no one's interest to rush out the news," a sponsorship industry source told The Independent.

 

BT would be able to use its brand with the 2012 logo and as a backer of Team GB for the next six years, including at the Beijing Games in 2008 and the Vancouver Winter Olympics in 2010.

 

The company would also have the right to buy Olympics tickets for staff or as competition prizes and would have first refusal on poster sites at key Olympics locations.

 

Lloyds TSB also paid £80 million for the right to associate itself with the 2012 Olympics, which need to raise £750 million towards the overall budget of £2 billion that LOCOG will need to stage the Games.

 

Locog is thought to be in talks with up to 60 potential sponsors in seven other sectors as the frontrunners to become official Games partners become clear.

 

A BT spokesman denied a deal had been done but added: "We believe the 2012 Games will bring huge and lasting benefits to all parts of the country and becoming an official sponsor is cert-ainly something we would be interested in.

 

"For any sponsorship undertaking on this scale, there is a multitude of commercial considerations."