Rio de Janeiro has beaten off competition from Sao Paulo to be chosen as Brazil’s bid city for the 2012 Olympic Games.

Rio, which bid unsuccessfully to host the 2004 Games, will be up against cities including New York, London, Leipzig, Havana, Madrid, Moscow, Paris and Istanbul and has until 15 July to formally declare its candidacy to the International Olympic Committee (IOC).

Organisers claim staging the Games in Rio would cost $4.7bn (£2.85bn), but believe the city has a head start because it will be spending $300m (£182m) to stage the 2007 Pan American Games.

Should the Rio bid be successful, it would be the first time the Olympics will be held in South America.

• Elsewhere, IOC president, Jacques Rogge, met with Prime Minister, Tony Blair and Mayor of London, Ken Livingstone, at 10 Downing Street this week while Rogge was in London for the Wimbledon men’s final.

The IOC president said afterwards: "They both demonstrated their strong support for London's bid.

“The Prime Minister was interested in hearing what the IOC's priorities are for a good bid".

Also at the meeting were the three British IOC members, Craig Reedie, Matthew Pinsent and Phil Craven; Tessa Jowell, secretary of state for culture, media and sport and London 2012 bid chair, Barbara Cassani. Details: www.olympic.org