Yesterday the European Union approved a £450 million loan for Transport for London's (TfL's) plan to ramp up infrastructure ahead of the international sporting event, which will feature high profile buildings by the likes of Zaha Hadid.
The money will go towards London mayor Ken Livingstone's £10 billion five-year investment programme earmarked to improve the Underground's East London line.
About 75,000 residents of some of London's most deprived boroughs will benefit from improvements to the network.
TfL director for finance and planning Jay Walder said: 'It will support the regeneration of some of London's least well off areas as well as playing a significant part in our transport plans for the 2012 Olympic and Paraolympic Games.'
Earlier this month Hadid was told to rethink her plans for the Olympic Aquatic Centre, after the proposed scheme came in at almost double the original £75 million budget.