MANCHESTER'S chance of making a third Olympic Games bid has been quashed as officials ruled London as the only British contender.

Although Manchester will host the Commonwealth Games this summer -- the success of which would be vital for future Olympic bids -- it is believed the Capital would be the only viable option for the world's most prestigious multi-sport tournament.

A study of the potential costs of London hosting the 2012 Olympic Games is set to get underway, it has emerged. It follows previous failed attempts by Birmingham for the 1992 Olympics and Manchester for the 1996 and 2000 events.

Manchester, however, was successful in gaining the Commonwealth Games which run from July 25 to August 4. Badminton will be played at Bolton Arena and cycling in Rivington.

Sports Minister Richard Caborn said the decision on whether or not to bid was principally a matter for the British Olympic Association which had yet to decide on the 2012 games.

In a written Parliamentary reply, he said: "It is current BOA policy that any UK bid should be based in London.

"The BOA's eventual decision will inevitably be influenced by public opinion both in London and across the UK together with the views of London and central Governments."

Consultants have been appointed to establish the financial viability of London staging the games and are due to present a report on their analysis in early May.

The funding bodies who will receive the report including the British Olympic Association and the Department of Culture, Media and Sport.

A spokesman for Manchester's Commonwealth Games office said it did not comment on other events.