The decision to award the stadium to West Ham after the Games was challenged in court
Tottenham Hotspur's legal bid for the 2012 Olympic Stadium is continuing despite claims it is about to drop it.
The club is due in the High Court seeking a second judicial review over the Olympic Park Legacy Company's choice to hand the stadium to West Ham.However, local sourses have said, Spurs are on the verge of abandoning the battle.
After negotiations on Tuesday it is thought the club is close to striking a deal to build a new stadium.
Spurs had been looking for government and mayoral support over their plans for a bigger ground at a site in Northumberland Park, near White Hart Lane, for several months.
Any deal with Boris Johnson is expected to involve public funding, which the mayor has already said he supports.
A High Court judge has already turned down the club's first appeal for a judicial review.
If the club drops this second judicial review bid, West Ham is expected to be able to go ahead with their plans to move into the Olympic Stadium, by 2014.
Under West Ham's plan, it is understood London's hopes of staging the 2017 World Athletics Championships would be boosted.
Spurs have played at White Hart Lane since 1899.
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