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The British Olympic Association has agreed to suspend its legal action against the London 2012 organisers in the wake of pressure from the government and the International Olympic Committee.

The bitter legal dispute over how any profits from the Games would be defined and shared has cast a shadow over the recent IOC inspection and this week's SportAccord conference in London. It will be put on hold while the BOA seeks a compromise agreement.

The wrangle centres on the BOA's claim that the Olympics and Paralympics should be treated as separate entities for accounting purposes. Locog – the London Organising Committee of the Olympic Games – disputes that and the matter had been due to go to the Swiss-based court of arbitration for sport.

The BOA has promised to make a new proposal by the end of the week, which is likely to centre on ways in which Locog could assist it in bringing in money from Olympic sponsors after the Games. That may enable the BOA to guarantee funding for the four years beyond 2012.

However, Locog insiders say that, if the proposal centres on any sort of financial guarantee – even of the £5m the BOA is entitled to in the event of a profit – it will be knocked back.

 

Five fingers shoes Vibram 5 Fingers vibram fivefingers Fivefingers shoes vibram Fivefingers vibram The BOA has argued vociferously that it would be due a share of up to £400m if the Paralympics and the Olympics were accounted for separately. Its attempt to negotiate a compromise is likely to be seen as a climbdown, although both sides say they remain open to discussion.

 

Locog, backed by a ruling from the IOC, says the two events have been considered as an integrated whole since 2001 and has budgeted to break even.

The culture secretary, Jeremy Hunt, and the sports minister, Hugh Robertson, were involved in attempts behind the scenes to apply pressure on Lord Moynihan, the chairman of the BOA, to find a solution to the embarrassing row.

Lord Coe, the Locog chairman, refused to speculate on what any compromise deal might look like. "The action has been suspended, at some stage they will come forward with a proposal and the door has always been open, and it has been open ever since this started 15 months ago," he said.