Birmingham is in negotiations with London Mayor Ken Livingstone to ensure the city plays a major role in the 2012 Olympic Games.
Up to six competing teams could be housed in the city after Mike Whitby, leader of the city council, met Mr Livingstone to discuss Birmingham's contribution.
Coun Whitby said Birmingham could play a major part as a "significant British city" which had an excellent track record in hosting international events.
He also used the meeting, in Mr Livingstone's offices, to express Birmingham's sorrow and solidarity with the people of London following the terrorist attacks on the nation's capital.
Birmingham has also suffered at the hands of terrorists, he said.
Business leaders argue that London's victory over rivals such as New York and Paris in the contest to host the 2012
Olympics will provide opportunities across the country.
Miniature Olympic villages, with accommodation and training facilities, will be needed for visiting teams in the run up to the Games.
Coun Whitby said: "I offered whatever support I can for the Olympics.
"He reiterated that London alone could not host a capital Olympics.
"He foresaw us probably looking after four, five or six of the national teams."
London recognised that Birmingham had a history of successfully hosting major international events, such as the G8 Summit in the city in 1998 and the Eurovision Song Contest, Coun Whitby said.
The council would create an umbrella organisation in Birmingham bringing together the authority and private enterprise to ensure that the city made the most of the Games.
"We offered to play a significant role making the Olympics a success and I believe London has accepted that in the right spirit."
A spokesman for the Mayor of London's office said: "They had a constructive meeting. We are entering a period of heavy planning and Birmingham's offer will be taken forward over time."
London is promoting the 2012 Olympics as a Games for the whole country.
It has already been confirmed that Villa Park will host at least one of the matches in the football competition.
Sport facilities all over the UK will host training camps and preparation events to help athletes from across the world acclimatise.
The organisers of London 2012, led by gold medallist Sebastian Coe, also say tourism will receive a boost right across Britain.
Australia reported an additional 1.6 million visitors due to the 2000 Games visitors who ventured beyond Sydney to explore the whole country, they say.
The Government said it plans to relocate five swimming pools and four sports arenas to the rest of the UK after the Games, which could include Birmingham.
Birmingham launched its own, unsuccessful Olympic bid for the 1992 games. Coun Whitby and Mr Livingstone also discussed the terrorist attacks at their meeting.
The Birmingham council leader said: "I expressed our condolence and sorrow at the events on July 7.
"The stoicism and character exhibited by the people of London has also been shown by the people of Birmingham when we ourselves were attacked in the past."