London 2012 chief executive Paul Deighton has predicted organisers will beat their target of securing £650million in sponsorship by more than £50million.

The London organising committee announced UPS as their 22nd domestic sponsor on Wednesday in a deal worth around £20million and bringing the total so far to £550million.

Deighton said the pull of the Olympics was becoming stronger as the Games approach and had allowed organisers to revise their target upwards despite the recession.

Deighton said: "People are planning for recovery now which is good but I think the momentum of our sponsorship programme and the excitement as we get closer to the Games is probably a stronger pull than the economic background.

"We have now raised £550million and the total value of our original target was £650million. I would say that given how strong we have been we are now focused on reaching £700million.''

Deighton said he believed all the 'tier one' sponsors had now been signed, with the remaining coming from tier two - such as UPS - and tier three.

UPS becomes London 2012's official logistics partner and most of their sponsorship will be delivered as value in kind rather than cash.

The company came to Deighton's attention last year when they were filling the same role at the Beijing Olympics.

Deighton added: "They have fantastic Olympic experience from Beijing. It became apparent to me this was precisely the expertise we needed here as from an operational point of view getting this stuff right is absolutely vital for us.

UPS will provide London 2012 with a fleet of up to 120 vehicles, including electric zero-emission vehicles.

Dan Brutto, president of UPS International, said: "We need to have flawless execution. It's complex and going to be challenging but the UPS team are up for it.''