• We're listening to people's concerns,' says No 10
• Signs of split as education department denies u-turn
David Cameron has ordered a rethink of the government's controversial decision to cut funding for school sports amid unease in the cabinet and a growing campaign by British Olympic stars.
Downing Street sources said a revised plan, with extra funding, would be unveiled soon after a backlash against a decision by Michael Gove to slash £162m a year in funding from school sports partnerships across England.
"There are clearly very strong feelings about this," one No 10 source said. "We are listening to people's concerns."
The prime minister indicated a rethink was under way when he told MPs the government was talking to headteachers and he hoped to make an announcement soon. "The culture, media and sport secretary and the education secretary are working hard on this," he said. "We are talking with headteachers so we can make sure that what we come up with actually works on the ground."
The rethink comes amid mounting anger over Gove's decision to end all ringfenced funding for school sport. The money is used to run PE classes in schools where there are no trained staff, organise sports clubs and run competitions.
Olympic champions, including heptathlete Denise Lewis, javelin thrower Tessa Sanderson and cyclist Jason Queally, are among 75 athletes who have written to the prime minister demanding a rethink of an "ill-conceived" policy they claim will damage children's health.
Cameron said at prime minister's questions: "It does seem to me that we all have a shared interest here. We all want good sport in schools, we all want more competitive sport and we have all got to make sure that money is spent well. I think everyone accepts that not every penny was spent well in the past and there is quite a bureaucratic system."
His emollient language, in answer to a question from the former Labour sports minister Gerry Sutcliffe, contrasted with last week's prime minister's questions when he described the £162m programme as a "complete failure".
But there were signs of differences among ministers tonight, indicating that details of the new plans have yet to be finalised. While Downing Street sources indicated there had been a change of heart, education department sources insisted otherwise. One source said: "There has not been a rethink. The system is bureaucratic and savings need to be made."
The two sides agreed there would be no U-turn on the overall decision to end ringfencing of funds because ministers want to hand the initiative to headteachers in line with the overall approach to education. There will also be an emphasis on promoting competitive sport and establishing the Schools Olympics.
The education department source said: "We will foster more competitive sport and we will de-ringfence money. There will be no centralised PE strategy. If schools want to use these partnerships they can pay for it themselves."
Andy Burnham, the shadow education secretary, said the decision to cut funding had sparked a "remarkable grassroots revolt". He said: "In the last 24 hours we have heard a huge change in tone on this issue from both the prime minister and Michael Gove. It seems they now admit they got it wrong and that school sports partnerships have been a success."
Sixty headteachers from across England wrote to the Observer to express their outrage at the cuts, describing Gove's move as "an ignorant, destructive and (even in terms of coalition policy) a contradictory and self-defeating decision. It is entirely unjustified educationally, professionally, logistically and in terms of personal health and community wellbeing."
In a letter to Gove, the head of King Alfred's, a specialist sports college in Oxfordshire, warned that the decision would put many young people off sport for life. Simon Spiers said there had been a rise in both competitive and recreational sport as a result of the scheme. "Your plans to remove the School Sport Programme will ensure that many young people will be 'encouraged' or forced to participate in competitive team games when they have absolutely no desire to do so."