The decision came as London 2012 responded positively to a request from the BOA to reopen talks over trying to find a settlement to the affair.

A date still has to be set for the meeting but it is the first indication that the BOA chairman Colin Moynihan is ready to back down in a row that has left him isolated both domestically and internationally.

"We have taken the decision to suspend the case before CAS, and have notified CAS of that," a spokesman for the BOA told insidethegames. 

"We have requested a meeting with LOCOG and they have agreed, and the purpose is to continue working together towards a resolution.

"It has been our desire all along to resolve this outside the legal process and we are pleased to have this opportunity with LOCOG.''

The BOA are due 20 per cent of any surplus after the Games but are claiming the cost of staging the Paralympics should not be taken into account when calculating that surplus.

The BOA claim that they have not totally withdrawn the threat of taking the case to CAS but the decision to take a step back and try to reach a negotiated settlement means that the case is now unlikely to be heard by the CAS, which potentially could have cost the BOA tens of thousands of pounds if they had lost. 

The IOC claimed that the CAS did not have jursidiction over the dispute because the BOA had signed a contract which gave them the right to have the final say.

A London 2012 spokeswoman said the BOA had approached them with a new proposal.

"They have said to us they have a proposal they want to discuss and we have always said our door is open if they want to talk," she said.

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