Culture Secretary Tessa Jowell announced that there will be a permanent memorial to the victims in Tavistock Square - the site of the bus bombing last summer.
However, officials said that no decision had yet been taken on whether it would be subject to a design competition like the one currently underway for the memorial to the Queen Mother.
'We don't know yet,' a DCMS spokesperson said. 'All we understand is that we have to follow the OJEU rules.'
But a spokesman for Jowell did say that the families of the victims would help decide the design. 'The permanent memorial in Tavistock Square will be created in a specially designed garden on the side of the square closest to the scene of the attack on the bus.
'The DCMS is working with the bereaved families to create what will be a lasting memorial to the terrible loss of life, but also a place of strength, dignity and hope.'
It is understood that more decisions will be taken on the memorial in late summer.