It is understood that ministers have decided to place honours arising from the London Games outside the Whitehall honours system.

The move will ensure that there is no restriction on the number of honours, sources said. The Daily Telegraph disclosed last month that a quota system meant Olympic gold medal winners could be ignored in favour of senior civil servants in the New Year’s honours list.

Britain won 29 gold medals at the Olympics, and the scale of success and the depth of public delight at the victories of champions such as Bradley Wiggins, Jessica Ennis, Ben Ainslie and Mo Farah raised expectations that many competitors would be honoured.

At the Paralympics, Britain has so far won more than 100 medals.

Among the most high-profile winners are Sarah Storey, who has amassed 11 golds in two sports over her career, and Ellie Simmonds, who won two swimming golds.