Barbara Cassani said the facilities which would be built to host the games would benefit the whole population.
"Our next generation of athletes will be better equipped to develop into future Olympians," she added.
London is up against eight other cities in the race to stage the games. The winner won't be announced until 2005.
Ms Cassani was speaking at the official launch of the bid in London's Covent Garden.
She revealed that a 500-acre sports village would be built in east London and that some of the capital's landmarks would be turned into sporting arenas.
Horse Guards Parade would be the venue for beach volleyball.
Softball and baseball would be staged in Regent's Park.
"We can promise a spectacular event that will be enjoyed around the world, " she said.
"More people will get off the couch and get involved in sport. The nation will be fitter and more active."