Handball could get the elbow over £79m shortfall

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The move would sink the host nation's stated aim of being represented in each of the 26 sports categories at the London Olympics.

The 30-strong British handball squad is currently training in Denmark.

Funding body UK Sport has pumped £3 million into British handball - which has never had an Olympic team - over the last four years in the hope of entering men's and women's sides in 2012 that would automatically qualify as hosts. But it is thought that the sport is one of the most likely to be cut from the government-backed "World Class Pathway" programme if the funding shortfall is not solved by December.

The sport is considered vulnerable for two reasons: it is unlikely to produce a medal in 2012 and as a team sport it is more expensive to fund than for individual athletes.

A spokesman for British Handball said: "It would be a huge blow if the money was cut and it could be the end of the road for the players who have given up jobs or studies to chase this dream."

It is thought similar uncertainty faces British teams in wrestling, volleyball and table tennis. Judo and weight-lifting performed poorly in Beijing.

The funding shortfall has arisen because ministers have been unable to find all of the £100 million that the Government hoped to raise from the private sector.

The Department of Culture, Media and Sport has not given up hope of raising the money.