The games could potentially deliver up to $14million of economic benefits.

The bid, from Special Olympics Australia, is backed with letters of support and guarantee of $1million funding from the O’Farrell government.

Newcastle City councillors agreed during a confidential session on Tuesday to pitch in with $250,000 towards the cost of staging the games if the bid is successful.

The city is thought to be up against rival bids from India and Malaysia, with a decision expected to be made by the governing international body next month.

The event, for athletes with intellectual disabilities from 24 countries, would be staged over eight days from late November 2013 at venues including Hunter Stadium, Hunter Sports Centre, The Forum, Broadmeadow Basketball Stadium, No.1 and No.2 sportsgrounds, and the Newcastle Badminton Centre.

Special Olympics Australia chief executive Gill Stapleton said the organisation was ‘‘quietly confident’’ about the strength of its bid and that securing the event would help promote the games in Australia.

When approached, the state government had said it would lend its support to a regional pitch, leading bid organisers to Newcastle.

Sports Minister Graham Annesley, Disability Services Minister Andrew Constance and Newcastle MP Tim Owen had pushed to secure support for the bid.

‘‘The collaboration with the government [and council] makes it, we think, a well-placed [bid],’’ Mrs Stapleton said.

‘‘We seriously considered Penrith, but Newcastle had the facilities suitable not only for the events, but for hosting and fostering an Olympic village hub.’’

Accommodation at the University of Newcastle would be used.

Benefits of between $10million to $14million could flow through spending on other accommodation, meals and tourism.

Mr Owen said securing the games would be a ‘‘huge boost’’ for the city.

The government was also still committed to undertaking a feasibility study to prepare a bid for the 2022 International Exposition.

Last year, it dropped an election commitment to prepare a $1million bid for the 2017 expo event, believing it was unlikely any pitch would win against strong competition from Belgium.

Newcastle is set to host Special Olympics Australia national junior titles in December, which will involve 350 athletes.