The modernisation, funded by the International Olympic Committee, is set to begin after next month's Olympic flame lighting ceremony at Ancient Olympia.

It represents the biggest building project on the IOA site in over 25 years.

Hellenic Olympic Committee President Spyros Capralos hailed the IOC's decision over the investment.

"It is fortunate that in such difficult economic times, the International Olympic Committee will renovate these old and outdated Olympic facilities," said Capralos.

"The existing facilities will be optimised and improved.

"I hope that by June 2021, when the renovation is complete, the International Olympic Academy will take off and make Olympia the true centre of the Olympics.”

HOC delegates heard a presentation by IOC corporate events and services director Panos Tzivanidis before rubber stamping the plans.

The inauguration of the renovated IOA is scheduled to be part of the programme when the 2021 IOC session takes place in Greece.

IOA President Isidoros Kouvelos paid tribute to IOC President Thomas Bach and Ser Miang Ng of Singapore who formulated the plans.

"We are entering a new era where the academy is not only upgraded in terms of facilities but also in terms of actions and educational programmes,” said Kouvelos.

IOC President Bach has described the IOA as a “commitment to our roots and heritage.”

When the IOA first opened its doors in 1961, the participants slept in tents pitched on the hillside in Olympia. 

Lectures were held in the open air.

Permanent buildings appeared in 1967 and a new lecture hall and library were added in 1994.

The IOA narrowly escaped destruction when wildfires hit the region in 2007.

Leading Olympic scholars have taken part in the IOA work and participants have included notable Olympic champions such as Jesse Owens, Miruts Yifter and Irina Szewinska.