The government has shelved a decision on Britain's Olympic bid for two weeks in order to allow ministers to engage in further talks.

Following a Cabinet discussion on the prospects of a British bid for the 2012 games, Number 10 said it would be "judicious" to spend more time weighing up the pros and cons.

"There are complex issues that this raises for a number of the departments of the government," said Downing Street. "It is going to take a bit more time."

"Everyone accepted it would be great to bid for it, but there has got be a hard-headed assessment of all the different factors

"If it means that we spend a bit longer and make the right decision it is worth spending a bit more time."

Amid growing international concerns over a war in the Middle East and tensions among ministers, Thursday's cabinet meeting did not end speculation over the government intentions.

Other issues have also heightened tensions among cabinet members.

Speculation is rife that the stormy relationship between Gordon Brown and Tony Blair has again reached a low point and Robin Cook is concerned over the prime minister's less radical approach to reforming the House of Lords.

Both Tony Blair and Gordon Brown are believed to have been won over by offers from the National Lottery and London Mayor Ken Livingstone to help raise £2.5 billion in funds.

Ministers are said to have remaining concerns over transport links into East London - which is where the main events would be hosted.

However, the Treasury has softened its line on hosting the event over recent weeks.

Officials have been working with the British Olympic Association to agree figures for costs - which are estimated at up to £4 billion.

The ministerial team at the Department for Culture, Media and Sport is pushing for the government to get behind the British Olympic Association.

London mayor Ken Livingstone said there was a growing sense that ministers would back the deal.

"I was very, very pessimistic. But the deal that Tessa Jowell and Dick Caborn put together gives us a chance of doing it," he said.

"I was really impressed by the ground they had made. I can't believe she doesn't want this to go ahead."