Cassani was appointed chair of London's bid in June 2003
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Barbara Cassani has stepped aside as chair of London's bid to host the 2012 Olympic Games.
Double Olympic gold medallist Lord Coe is now chairman and president of the bid team with Cassani taking the vice-chair role.
Cassani said she had achieved her goal of creating an exciting bid for London, but said the team now had to win over the international sporting community.
"The changes in our organisation reflect these priorities," she said.
Cassani, an American businesswoman who founded the budget airline Go, said London's bid would have a better chance with a Briton at the head of the organisation.
"I think it will be easier to sell the bid with a world champion, double gold medallist who was born in London," she said.
After the surprise reshuffle, Lord Coe said he was honoured with his new role, adding that it would be a "tremendous challenge".
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THE NEW MAN IN CHARGE
Age: 48
Sporting pedigree Double Olympic 1500m gold medallist; former 800m, 1500m and mile world record holder
Political career Former Conservative MP, became Lord Coe in 2000, now on IAAF council
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"Barbara and the team have done a fantastic job in creating the building blocks for the bid," he said.
"Through my work in international sport, I am looking forward to promoting London's bid to the sports community across the globe.
"As a former athlete and Olympian, the Olympic Games profoundly and positively influenced my life.
"I want to give that opportunity to others and leave a legacy for future generations."
It was also confirmed on Wednesday that chief executive Keith Mills will also take on the role as bid president (international) to boost the campaign's presence overseas.
"Now that we're a candidate city, we are ready to take the bid to the Olympic movement," he said.
Craig Reedie, chairman of the British Olympic Association and an IOC member insisted he was delighted with the progress of London's bid.
"We would like to pay tribute to the work of Barbara Cassani," he added.
"Going forward, Seb, Keith and Barbara will form a great team to lead efforts in developing our proposal and on winning international support."
London's bid was one of five shortlisted by the International Olympic Committee on Tuesday, but the city's road and rail system was highlighted as a potential problem.
The IOC working party rated London's bid as third, behind those of Paris and Madrid but ahead of New York's and Moscow's.