British Olympic chiefs claim a £10million sponsorship deal for 'Team 2012' is a major step towards plugging a funding gap for athletes in the run-up to the London Games.

Visa were announced as Team 2012's presenting partner on Tuesday, giving the company promotional rights to 1,200 British athletes.

The size of the sponsorship deal was not officially confirmed but it is understood to be for #10million - a significant chunk of the £25million target.

The next step in the Team 2012 drive takes place tonight where 140 multi-millionaires from the business world will have a presentation to try to persuade them to become patrons of the British Olympic team.

Tuesday's Visa announcement came after an agreement was finally reached with athletes' agents over image rights.

Andy Hunt, chief executive of the British Olympic Association, said: ''This is a multi-million pound deal and it's a real step along the journey. We are hoping to raise up to £25million which would make a significant difference to having the broadest and most competitive team at the London Games.''

There was resistance initially from some agents, including those representing Sir Chris Hoy, Rebecca Adlington and Christine Ohuruogu. A deal was struck after UK Sport guaranteed no fewer than four athletes - from a minimum of three sports - will be used in any images to promote Team 2012 or their sponsor, with no undue prominence given to any athlete.

UK Sport chief executive John Steele said: ''This has not been an easy road - this is a completely new scheme but we have 100% support from the sports and the athletes and that's an incredible place to get to in the timescale that we have had.''

The Team 2012 drive was launched to fill a £50million funding shortfall that led to cuts for four Paralympic and eight Olympic sports - including shooting, volleyball and table tennis - earlier this year.

Steele said those sports affected still needed to prove that they would provide value for any money invested.

He added: ''We will invest money on merit - they are in the mix with everyone else in a performance meritocracy.''

Even if the £25million total is reached, that still leaves the same amount missing from the Government's original target of private-sector funding.

Sports minister Gerry Sutcliffe insisted however: ''Let's look at it from the other way. There never was a shortfall - there has been a massive investment into sport, the biggest there has ever been.''

Some of the Visa money will provide the first year of funding for Sir Clive Woodward's Olympic coaches programme at the BOA, but most will be allocated by UK Sport in their end-of-year review.

UK Sport say the Visa deal will not prevent any athlete signing individual sponsorship deals, including with other payment card companies. Visa say they do not anticipate any such contracts being signed and that they will keep a close eye on any attempts at ambush marketing. The breakthrough in securing this private-sector backing for the Olympic and Paralympic teams came after the London organising committee agreed to allow approaches to be made to their sponsors and worldwide Olympic sponsors.

Sebastian Coe, chairman of the London organising committee, said: ''Today's launch of Team 2012 is a ground-breaking moment for British sport. It will help bring to reality the dreams of future generations of athletes in competing at the very highest level.''

Ben Ainslie, three-times Olympic sailing gold medallist, said: ''I am very pleased to support Team 2012, in particular its ambition to raise funds for athletes across all the Olympic and Paralympic sports not just in the build up to London but beyond 2012 as well. It is vital that we maximise not just our nation's medal opportunities at the Games but also the legacy that can be left in terms of the potential of future generations.''