Tokyo's City Government will pay a quarter of a ¥158 billion yen (£850 million/$1.3 billion/€1.2 billion) cost for the new Olympic and Paralympic stadium, it has been confirmed today.
The National Government will pay half of the cost, while the remainder will be shouldered by the Japan Sports Council.
Agreement was reached following talks between Tokyo Governor Yōichi Masuzoe, Olympics Minister Toshiaki Endo and Sports and Education Minister Hiroshi Hase.
“As the Governor of the city to host the Olympic competition in 2020, I would like to accept the budget plan,” Masuzoe said.
City authorities will also finance pedestrian walkway-access and other maintenance for the stadium, expected to become a national landmark and recreation site following the Games.
He will now seek feedback on the costs from Tokyo Metropolitan Assembly members and residents.
Prime Minister Shinzō Abe scrapped the original plan for the Stadium in August, due to be built on the site of the arena used for the 1964 Olympics, in the face of public criticism after its costs spiralled to ¥252 billion (£1.3 billion/$2 billion/€1.8 billion), nearly twice original estimates.
This came after Tokyo 2020 officials had angrily rejected a request to support ¥50 billion (£280 million/$450 million/€430 million) of the initial budget.
It is hoped a new design will be unveiled before the end of the year, officials promised last month.
Work is not expected to start until next year, with it hoped the new stadium will be completed by January 2020.
The Stadium was originally set to be completed in time to host key matches of the 2019 Rugby World Cup.
Matches, including the final, will now be held in neighbouring city Yokohama.
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October 2015: Olympic swimming champion "disappointed" at Tokyo 2020 National Stadium debacle as new sports agency launched
September 2015: Hakubun Shimomura to resign as Japanese Sports Minister as Tokyo National Stadium fallout continues
September 2015: Zaha Hadid and Nikken Sekkei withdraw from Tokyo 2020 National Stadium competition
September 2015: Architects of scrapped Tokyo 2020 stadium warn of "lower-quality" design