The cost of the London 2012 Games has come in at £377 million under budget, according to Government figures released on Tuesday.
The overall cost of the Games is forecast at £8.921 billion from a budget of £9.298bn.
With some contracts still to be wound up after the end of the Games, ministers are describing the underspend as a "prudent" estimate.
Sports minister Hugh Robertson described the feat of managing the complex programme within budget as "a tremendous success".
He said: "The work of the construction and delivery teams, from the ODA (Olympic Delivery Authority) and LOCOG (London Organising Committee of the Olympic and Paralympic Games), has set a very high standard and I have no doubt that London 2012 has set a new benchmark for the management of Olympic and Paralympic Games in future."