Planners have discovered they are forbidden by law to build a sports facility on a plot of land near the 2012 Olympic stadium in Stratford.
Sports Minister Richard Caborn plans to amend the Olympic Bill in order to override the ancient covenant.
The amendment will be inserted before the Bill gets to the House of Lords, where it should be passed this year.
"The covenant stops you from building sports facilities, which I said is not very helpful," said Caborn.
The 30 hectare site, complete with an Olympic village, new 80,000-seater stadium and transport facility, will be one of the main focuses of the Games in 2012.
Caborn also said he expects a deal will be struck within a day over a contested strip of land wanted for the Olympic site.
London & Continental Railways (LCR) has been involved in a tussle with the London Development Agency over the 180-acre Stratford City site it owns as part of a development consortium.
LCR want it for a £4bn development including 4,850 homes, 120 shops and office space. The LDA has other ideas and there has been talk of a compulsory purchase order.
It has been argued that the land is essential for access roads and car parking for the Olympics.
Caborn said: "The best way here for all parties is to have an agreement and I'm hopeful that will happen in the next 24 hours."