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Britain's hopes of fielding a competitive basketball team at the London 2012 Olympics have been raised after the sport's governing body partially lifted an international ban on English players.

The International Basketball Federation (FIBA) had barred all English players from competition following Sport England's decision to freeze funding for England Basketball after a review labelled it "untenable".

FIBA accused Sport England, the Government agency responsible for funding sport, of "unacceptable interference" in England Basketball's affairs.

However, at a meeting between England Basketball chairman Terry Donovan and FIBA general secretary Patrick Baumann several of the issues seem to have been resolved, chiefly Sport England's decision to release part of the withheld funding.

"FIBA and FIBA Europe have determined that sufficient initial progress has been made to ensure that English basketball teams and players are closer to being admitted to play in European competitions," a FIBA statement said.

England's Under 20, Under 18 and Under 16 teams will now be permitted to play in European events later this month although a final decision on senior teams has been postponed until July 13.

"We now urge the British Government and its agencies to resolve the remaining issues concerning England Basketball," the statement added.

Last month Keith Mair, chief executive of England Basketball, said any ban on English players would have a devastating effect on Britain's hopes of reaching the required standard for an Olympic basketball team.