Paralympic hero Tanni Grey-Thompson has been turned down for a key role in delivering London 2012's legacy amid claims of a Government 'stitch-up'.
A political row is expected to spark today when ministers announce that the new head of Sport England will be Nick Bitel, chief executive of the London Marathon.
It is claimed Baroness Grey-Thompson, who had the backing of Lord Coe and was Mr Bitel's main rival, was overlooked because she had been too critical of the Government.
Although the 43-year-old who won 11 Paralympic gold medals sits in the Lords crossbench peer, she has lead criticism of disability benefit cuts.
Hugh Robertson, the Sports Minister, will say today that Mr Bitel, who has been in charge of the London Marathon since 1995, was the best candidate for the job, The Times reported.
Whitehall sources told the paper: 'In terms of national organisation, leadership, commercial experience, he's got it all.'
It was Lady Grey-Thompson's lack of experience in the commercial sector that had hampered her candidacy for a job with a £300million annual budget, they said.
'Tanni Grey-Thompson is a great athlete, a great Paralympian, but in terms of the commercial experience she has never run anything.'
Downing Street was made aware of the decision last week. Although it was taken within the Department for Culture, Media and Sport, the Prime Minister could have overturned it.
Sport England is charged with increasing grassroots participation in sport at all levels, creating more opportunities for young people to take part and improving facilities.
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However, Lady Grey-Thompson, was regarded by supporters as an ideal candidate and had the backing of Labour.
Last year she expressed concerns that disability benefit cuts risked undermining the Games' aim of widening access to sport for disabled people.
Lord Prescott, the former Deputy Prime Minister, posted a message on Twitter, to David Cameron reading: 'Please tell your peers to stop blocking [Tanni Grey-Thompson] becoming Sports England [sic] boss. Best candidate by far.'
Right candidate? Nick Bitel will be revealed as the new head of Sport England
Yesterday, Emily Thornberry, the Shadow Attorney-General, told The Times: 'She's eminently suitable for this role. I just worry that there might be some sort of political stitch-up.'
A spokesman for the Department of Culture, Media and Sport said: 'The process of appointing the Sport England chair is completely fair.
'It is focused solely on recruiting the best person with the right attributes to serve grassroots sport and deliver a lasting sports legacy from London 2012.
'We will make an announcement in due course.'