A Lend Lease team looks set to pip Bouygues in the race to develop the Olympic village

Building has learned that a consortium led by the Australian company, which also includes the East Thames Housing Group and First Base, has been selected to develop the non-retail elements of the Stratford City scheme.

The 4,500-home athletes village is the centrepiece of the scheme, and it makes up three-quarters of the value of the £4bn Stratford City project.

Bouygues was on the final shortlist with its partner Barratt Developments. However, sources close to the losing consortium believe that the scale of the project means there will be enough work for both parties.

The selection was carried out by the Olympic Delivery Authority (ODA), which is led by former Lend Lease executive David Higgins, and the owners of the Stratford City site – developer Westfield and London & Continental Railways.

An ODA spokesperson said a formal decision had yet to be made.

Building revealed last month (17 November, page 10) that both consortiums were seeking additional subsidies from the government to develop the village on the grounds that releasing thousands of homes onto the market at the same time risked depressing demand.