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London mayor Boris Johnson was this week due to set in motion the process of setting up a quango to deliver the regeneration of east London after the 2012 Olympics.

Johnson was due to convene the London Olympic Park Regeneration Steering Group on Wednesday. It will comprise a panel of ministers and local authority leaders who have the task of deciding whether to approve proposals.

Sources close to the London Development Agency (LDA), which is overseeing the Olympic legacy, say that, if approved, the consultation could begin by the end of the month.

The body would be a successor to the Olympic Delivery Authority (ODA). A source said it would take the form of an arm鈥檚 length public鈥損rivate vehicle, which could be granted planning powers.

The consultation, based on a study of how regeneration is delivered by financial adviser Grant Thornton, would ask if the body should be in charge of economic as well as physical regeneration, and what involvement local boroughs should have.

It is not yet certain whether the body will have planning powers similar to the Olympic delivery Authority.

Primary legislation would be required to give the body planning powers.

The source said: 鈥淭he timing of the consultation is to give us time before the autumn Queen鈥檚 speech in case statutory powers are required.鈥�

Regeneration plans for the Olympic site have been hit by concerns that receipts from the sale of the land are not going to be as high as previously thought.

An Olympic legacy masterplan is being drawn up by a consortium of architects, including EDAW, Allies and Morrison and KCAP.

The LDA, which is also facing an investigation over the issuing of grants under former mayor Ken Livingstone, was unavailable for comment.