Los Angeles is finalising a deal with the US Olympic Committee (USOC) to become the country’s new candidate city for the 2024 Olympics.

The city – which has held the Olympic Games twice, in 1932 and 1984 – has prepared a US$4bn bid, which mayor Eric Garcetti said will include a guarantee to cover any “financial overruns”.

The move follows last month’s collapse of Boston’s Olympic ambitions, as the city was forced to withdraw its bid following a lack of public support.

USOC needs to submit its official bid to the International Olympic Committee by 15 September.

Any US bid will then face competition from Paris (France), Rome (Italy), Hamburg (Germany), Budapest (Hungary) and Toronto (Canada) for the right to host the 2024 Games. The winning bid will be announced in 2017.

The last time the US hosted a summer Olympic Games was in Atlanta in 1996.

Since then, New York and Chicago have made unsuccessful bids for the 2012 and 2016 games respectively. The USOC did not submit a bid for the 2020 Games, which will be held in Tokyo, Japan.