The prime minister is supporting plans to bring the Olympic and Paralympic Games back to the UK, with £7m cash to be announced in next week's budget.
The government is looking into a potential bid for the north of England to host both games in the 2040s.
The new money is to fund an exploration of the bid and a "commitment to champion UK sport across the country".
A full feasibility study - which is expected to be announced by Chancellor John Healey in his budget on Wednesday - will look in detail at how a successful games could be delivered and the prospects of a winning bid.
In May, before Andy Burnham became prime minister, the government commissioned an assessment by UK Sport which could inform a bid for the international sporting event.
Having cleared that hurdle, the government has announced £7m for a full assessment of a future Olympic and Paralympic bid.
The last time the UK hosted the games was 2012 in London. The next one will be in Los Angeles in 2028.
The government said the ambition is to create a games that belongs to the whole of the UK, bringing communities across north and south together and spreading its benefits across the country.
Mr Burnham said: "Few things bring a country together quite like the Olympics. I want people to feel that sense of excitement again, and to experience it in their own towns and communities, not just watch it on the telly.
"The games would unlock opportunity across our towns and cities for the whole country. From north to south, it would be something everyone could get behind and be proud of.
"We know we can put on the greatest show on earth. Now we want to explore how we can do it again, with the whole country behind it."
The feasibility study will explore in greater detail how the games would work in practice, including types of venues and transport links needed.
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The work will involve the government, UK Sport, the northern mayors and the British Olympic and Paralympic Associations, who would ultimately be responsible for a bid.
Mr Healey said: "Olympic legacy lasts way beyond the celebration of sport over the summer. The North hosting an event as big as this would be truly unforgettable.
"Britain's experience of London 2012 is proof we can host the world. I'm picking up the pace on our work to potentially bid for these prestigious games. It will lift communities, create opportunities and give the UK a huge boost."
(c) Sky News 2026: PM backs north of England Olympics bid with £7m budget injection


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