By Simon Stone, PA Chief Sports Reporter

Sports Minister Kate Hoey has categorically denied that Britain's successful Olympians are set to suffer a cut in their lottery grants.

Gold medalists Matthew Pinsent and Denise Lewis have both spoken out against a move which seemed set to be made after a number of athletes received letters before heading to Sydney which suggested their income was about to be reduced.

Pinsent launched another tirade at Heathrow Airport this morning, minutes after touching down with the rest of the British squad.

But Hoey insists the athletes have nothing to worry about and added that her department were actually trying to find ways to increase the money available.

She said: "There is absolutely no question of the overall money distributed to elite athletes going down. In fact we want to see if there is any way we can strengthen it."

Hoey said concerns had been raised because of a series of meetings funding department UK Sport held with various governing bodies a few months ago during which they made a projection that their income from the lottery would fall over the next three years.

"Obviously they pointed out that if they didn't receive any extra funding the budget would have to be cut," she said.

"Since then Tony Blair has pledged £750million to school sport over the next three years.

"Gordon Brown has also given the UK Institute of Sport £4million, which was going to come directly from the lottery so that money can now be released as well."

Hoey refused to speculate on suggestions that Britain could be in line to launch a bid for the 2012 Olympics, even though the revamped Wembley Stadium is unlikely to host any athletics and the new Pickett's Lock site - venue for the 2005 World Athletics Championship - is not deemed big enough to host the event.

"I cannot add anything further to the speculation," she said.

"For the time being I think we should concentrate on congratulating those who have done so well at this Olympics."