Rodney Walker is aiming to nearly halve the £410 million sterling loan from City banks originally sought for the building of the new Wembley stadium in an attempt to generate financial interest in the project.

Walker, appointed by the Football Association to cut the overall cost of the project, is keen to have athletics included and for the 2005 World Championships to be staged at the new stadium. Support is growing among sport and government officials for the FA to commit more money towards Wembley and for athletics to be included.

This could result in cutting the borrowed amount to £215 million, thereby increasing City confidence. The inclusion of athletics in the project would mean that the FA would not have to return £20 million of lottery money as it had promised last year after it initially emerged that athletics would not be involved at Wembley.

The FA subsidiary company Wembley National Stadium Limited, of which Walker is chairman, would also receive a further £40 million of lottery money, already pledged, for the staging of the 2005 championships. While some of this money would go towards the purchase of land close to Wembley where a warm-up track would be constructed, it would also contribute to the overall cost of the new stadium.

In addition to this £60 million, the FA will also be asked to directly fund the project with some estimates putting the figure at £100 million, the amount the organisation originally agreed to underwrite for the construction of the new stadium. City institutions in particular are keen for the FA to partly fund the project as a way of showing confidence in its economic viability.

Walker is currently involved in negotiations with parties involved in the Wembley project and is looking at how a running track could be included within the new stadium and costs cut. The FA has already stated that the new stadium is unlikely to be built with hotel and office space and this could lead to a further saving of £35 million on the overall cost.

In total, together with FA money, the involvement of athletics and a more streamlined stadium, the overall amount of money that needs to be borrowed could be cut by £195 million.

The FA is particularly keen to see athletics return to the Wembley project as this would ease any financial concerns it has about the project.

Walker is due to report at the end of January on proposals to amend the Wembley plans and last night met the sports minister Kate Hoey and culture minister Chris Smith to outline some of his ideas.

The City baulked at the previous plan to rebuild Wembley, refusing to contribute to attempts by JP Morgan Chase, formerly known as Chase Manhattan, to raise £410 million from rival banks.