Detailed plans for the redevelopment are to be created

Sport England, which runs the south London venue, will extend its lease by two years while the London Development Agency (LDA) creates new plans.

The package was needed after Bromley Council said it could not afford to maintain the centre at the end of Sport England's original lease in March.

The move means the stadium can still host this year's athletics Grand Prix.

Work is to begin immediately on updating the running track in time for the competition, which begins in July.

Olympic Bid

Crystal Palace Park is to be taken over by the Greater London Authority (GLA) and it is hoped the LDA will then take the reigns within the next five years.

The LDA will start working with local groups to produce plans for a new improved sports centre and park.

London Mayor Ken Livingstone said the redevelopment would make the park a focus for south London.

He said: "The deal also means that the Grand Prix athletics event will now go ahead at Crystal Palace this summer, which is good news for London's Olympic bid."

The centre would play a role in hosting the 2012 Olympics, if the bid is successful.

The rescue package was created after Bromley Council said it could not afford to maintain the 40-year-old sports centre when Sport England's original lease was due to end in March.

A figure for the cost of the redevelopment will not be revealed until more detailed proposals are made by the LDA, but Bromley Council originally estimated it could be in the region of �30m.