The choice of venue has embroiled in controversy since January after the International Cycling Federation (UCI) ruled out the original choice of Weald Country Park because they claimed that it was not challenging enough for the world's top riders.

It led to a row after Welsh Government Minister were upset because an alternative choice near Port Talbot was overlooked by London 2012 who insisted that they wanted the venue to remain in Essex to fulfil the International Olympic Committee (IOC) criteria that facilities should be located near the Athletes' Village in East London.

An offer from Dalby Forest in North Yorkshire was also rebuffed.

The  venue change has been approved by the UCI, IOC, British Cycling and the British Olympic Association, although it is subject to contract negotiations, which are not expected to be an issue.

The new venue covers a 550-acre site situated close to the village of Hadleigh.

The site encompasses the outstandingly beautiful grassland and woodland of Hadleigh Farm, land owned by the Salvation Army, and the surrounding countryside of Hadleigh Castle Country Park .

There are two major hill areas, separated by a valley which will create the technical climbs for the course to challenge the competitors from around the world in less than four years time.

The course will be set against the stunning backdrop of the 700-year-old ruins of Hadleigh Castle .

Sebastian Coe, the chairman of London 2012, said; “It is testament to the hard work of everyone in involved that we have been able to confirm an alternative venue for the mountain biking competition only seven months after the venue change was announced.

"In Hadleigh Farm we have a world class venue for Games time with the potential for an excellent facility for elite and community use post Games."

Pat McQuaid, the President of UCI said: "The UCI is delighted with Hadleigh Farm and believe it will be a spectacular mountain biking venue for London 2012.

"It has a wonderful terrain and offers a unique opportunity for spectators to view the majority of the course.

"Our technical experts believe it meets all the requirements of an Olympic mountain biking course with a range of elevations that will provide a challenging course for competitors."

Peter King, the chief executive of British Cycling said: "We are delighted that such a stunning alternative venue has been found to host mountain biking for the London 2012 Games.

"With an approximate journey time of 45 minutes to Hadleigh Farm from the Olympic Park, the proximity to the Olympic Village will be of immense value to the mountain biking competitors.

"The potential for retaining a mountain biking course at Hadleigh Farm is very exciting as the sport is becoming increasingly popular in the UK and we want to build participation through the undoubted surge in interest in the run up to and after the London 2012 Games."

Stephen Castle, the Essex County Council Cabinet Member for Economic Development, Regeneration and the 2012 Games said: "I am absolutely delighted Hadleigh Farm is the chosen venue for the mountain biking event of the London 2012 Games.

"This is a once in a lifetime opportunity to showcase Hadleigh and South Essex to the world, to provide a real legacy both for local people and the international mountain bike community and show everyone all Essex can offer for sport, business, tourism and sustainable regeneration."

Major David Hinton, the secretary for business administration of The Salvation Army UK and the Republic of Ireland said: "The Salvation Army is delighted to be working with Essex County Council to create the 2012 Games mountain biking venue at Hadleigh Farm.

"Beyond meeting the technical requirements for the event, we are committed to working in partnership with Essex County Council, the London 2012 Organising Committee and the local community to ensure not only a great event in 2012 but also long lasting benefits for the community and the county as a whole after the Games. We look forward to being part of this exciting initiative."

A four-month period of detailed planning on the course layout and the temporary facilities required to host the event; securing contractual agreements between all parties, working with the local community on an engagement programme and the announcement in the autumn of the cycling competition manager will now take place.