The New Zealand Herald claimed that the Government will announce next week that they are not willing to underwrite half of the $600 million (£277 million) it is estimated that it will cost to stage the Games.

It leaves Abuja, the Nigerian capital beaten by Glasgow for the right to host the 2014 Games, as the only confirmed bidder so far, although if Auckland do not put themselves forward it increases the chances of the Gold Coast in Australia bidding.

Cities who want to bid have to let the Commonwealth Games Federation know by a deadline of March 31.

Sports Minister Murray McCully met the Auckland bid feasibility committee in Auckland earlier this week.

He said: "The numbers are daunting and we will make some decisions in the next week or so."

Part of the Government's reluctance to back the bid is also linked to uncertainties over the leadership of the Auckland Super City, who would fund the other half of hosting the Games.

Auckland hosted the Commonwealth Games in 1990, when the winners included England's Linford Christie in the 100 metres and Australia's Hayley Lewis, who claimed the 200m and 400m freestyle in the pool.

Auckland Regional Chamber of Commerce chief executive officer Michael Barnett, who is on the bid feasibility committee, has urged the Government to back the bid.

He told the New Zealand Herald: "If you play the long game, you have got the potential to say this could be the key that brings the new city together.

"It could be the event that was the making of Auckland."

"You have to accept that there is huge financial commitment when you undertake any of these major events but I believe that New Zealand needs to have a succession of major events if we are to retain our reputation as being able to host major events and to be able to do it well and be good hosts."

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