Olympics boost for London.

LONDON was yesterday named as one of five cities in the race to host the 2012 Olympic Games.

The city will battle it out with Paris, New York, Madrid and Moscow to win the crucial International Olympic Committee decision next year.

Yesterday's announcement followed a unanimous IOC vote in Lausanne, Switzerland.

Barbara Cassani, chairman of the London 2012 bid, said: 'It's a huge relief. It is a really big day.'

And a delighted PM Tony Blair said: 'The Government will continue to do all we can to bring the Games back to the UK.

'It would be good for London and the UKand I am confident we have the vision,the venues and the passion to deliver a great event.'

Rio de Janeiro was the shock loser, missing the final cut along with Havana, Leipzig and Istanbul.

IOC president Jacques Rogge stressed their exclusion was not a security issue but simply because their bids were 'not good enough'.

London, which last hosted the Olympics in 1948, has budgeted pounds 2.4billion for 2012.

The Lottery is supposed to provide pounds 1.5billion with further cash coming froma rise in London council tax rates and the London Development Agency.

Bookmakers immediately made London second favourites to win behind Paris.

London Mayor Ken Livingstone said: 'This is a great day for London and for the UK.'