London is in prime position to stage the 2029 World Athletics Championships after finally securing a substantial government funding commitment for the bid.

It is understood that the UK government has agreed to give £35m to help bid for the Championships, which would be the first to be staged in London since 2017, with the mayor’s office expected to commit around £10m.

It comes after months of lobbying from UK Athletics and UK Sport, with both organisations stressing that hosting the Championships would inspire the next generation of athletes like Olympic 800m champion Keely Hodgkinson and also bring substantial benefits to the economy.

The news was confirmed by the prime minister, Keir Starmer, on the day that London will stage a Diamond League meeting watched by 60,000 people. “Bringing the World Athletics Championships to the UK would be a moment of great national pride, building on our global reputation for hosting memorable sporting events that showcase the very best talent,” he said.

“Hosting these championships would not only unlock opportunities for UK athletes but it would inspire the next generation to get involved and pursue their ambitions. The event would provide a boost for UK businesses and support jobs as well as bring our communities together. I’m delighted to support the bid.”

The London Stadium is the proposed venue for the 2029 Championships, while the government says it is committed to taking the World Paras beyond the capital, with a host city to be confirmed in due course.

The news was also welcomed by Josh Kerr, the 1500m world champion and double Olympic medallist. “London 2017 was my first senior World Championships, and it lit a fire in me,” he said. “Being part of a home team in that kind of atmosphere was incredible – it made me hungrier than ever to become a world champion and chase Olympic medals.”

The success of the 2012 Olympics and 2017 World Championships means that London is seen as the leading candidate for 2029. A decision will be taken next September.