(From Sky News) London's Olympic bid team wept with delight after they beat the odds to host the 2012 Olympic Games.

In Singapore, England captain David Beckham and Olympic legend Sir Steve Redgrave embraced after the announcement was made and the thousands that had gathered in Trafalgar Square erupted into cheers and screams of delight.

Tony Blair, speaking at the G8 summit in Gleneagles, said: "It's not often in this job that you punch the air, dance a little jig and embrace the person next to you." Bid leader Sebastian Coe, said: "I feel absolutely ecstatic. We have the opportunity to do what I have always dreamt about for British sport." Culture Secretary Tessa Jowell told of her shock at the decision: "We came from nowhere to win the Olympic Games." London Mayor Ken Livingstone has pledged to "start the work tomorrow".

Over the channel in Paris, the French, who for so long had been favourite to win the games, were left crestfallen. Click here to watch the Sky News coverage of the moment.