The British Olympic Association settled its financial disagreement with the London 2012 organising committee (LOCOG) last night.

The dispute had arisen over the way in which any surplus from the Games would be calculated and divided. The BOA, which is entitled to 20% of the surplus, said that only the expense of the Olympics themselves should be counted wile the cost of staging the Paralympics should not be a factor. The body is now thought to have agreed with LOCOG that this is not the case.

The BOA had taken the matter to the Court of Arbitration for Sport after the International Olympic Committee ruled in LOCOG’s favour last month, a move which Olympics Minister Hugh Robertson dubbed "an embarrassment".

BOA chief executive Andy Hunt and chairman Colin Moynihan had been suspended due to the disagreement.

Hunt said of the resolution: "With this matter now resolved, the BOA will be able to keep its attention focused entirely on our preparations fto support Team GB at the Games."

The agreement is expected to be officially confirmed today.