Construction on the new stadium to be built in Green Point for the 2010 World Cup is now able to start after the cost has been slashed by over R1 billion to bring it "within reach" of the initial budget.

The cost of the stadium was reduced from R3.7 million to R2.68 billion over a two week period.

Helen Zille, the Cape Town's mayor, has said the cost reduction was achieved in two weeks of negotiations between city representatives and the preferred bidder through what she called "value engineering".

Basically they've made it smaller through minor structural adjustments. The 68,000 seater stadium will lose about 4m on the radius and will be made 2m lower.

It was done without compromising FIFA requirements, the conditions of the environmental authorisation from the province, or the functionality and sustainability of the complex.