Birmingham is vying with Barcelona to be the base city for the Chinese team at the 2012 Olympics.
A Chinese delegation followed up a visit to the Midlands last month with an inspection of facilities at the Spanish city which beat Birmingham in its bid to stage the 1992 Olympics.
Birmingham's leisure chief John Alden said the Beijing delegation was impressed with their visit to the West Midlands but was also considering options in Spain, Italy and Austria for its base camp.
If the Chinese decide against Birmingham, efforts will be made to woo other teams in an effort to cash in on the Games which could reap the city a potential £40 million-plus.
The city council has set up a task force headed by Brian Stocks, Birmingham's current head of sport and former leisure chief at Manchester City Council when it staged the Commonwealth Games in 2002.
It has also drafted in Richard Caldicott, a former head of UK Sport and the council officer who led Birmingham's 1992 Olympic bid.
The pair were instrumental in setting up the Chinese visit through their extensive contacts in sport.
Approaches to the Indian and Pakistani teams are also being considered as Birmingham already has strong links to the sub-continent through its large ethnic community. However, it would be seen as a real coup for Birmingham if the Chinese team was based in the city.
With more than 1,200 athletes, and 3,000 officials, physios and media representatives, the team of the 2008 Olympics host nation would be among the largest at the 2012 Games.
"We would love to have the Chinese in Birmingham, but we would be looking at a number of large teams if that is not possible," said Coun Alden (Con Harborne).
"I understand that they have also visited Barcelona, which already has Olympic facilities in place.
"Barcelona is quite some distance away from London, but maybe the Chinese are used to flying to events because they have such a large country.
"But I am sure we have enough facilities to cater for a major team, and the city council's Olympic task force is working hard to make that a reality."
A report compiled by the working group reveals that Birmingham's economy could receive a cash windfall of at least £42 million if the city attracted just one per cent of the expected tourism from the Olympics.
Birmingham is also hoping to secure a large slice of the expected £2 billion cost of staging the Games.
It would receive a financial boost through providing a proportion of the 100,000 rooms which would be needed to accommodate tourists during the event, and ideas being touted by Coun Alden include setting up a direct train and coach service from Birmingham to the Olympic Village.
Coun Alden said he was also considering a "potential Olympian card", which would give local fledging teenage sportsmen and women free access to leisure facilities in the city if they were thought to have special talents.
Coun Alden said: "There are some wonderful opportunities for Birmingham and the region in the run-up to 2012."