But it still will not be British

German Firm Loses Millennium Dome Contract

The organisers are to announce that they have signed a deal with an American firm that will supply a longer-lasting covering, extending the life of the celebration venue by 10 years.

The new roof will be made of glass fibre, rather than polyester - and it will cost more than twice as much. The move comes three days after a row was sparked when it was revealed that the contract to manufacture the special fabric had gone overseas.

The Deputy Prime Minister, John Prescott, angered the British construction industry by saying it was a "sad reflection" on their competency, putting him at odds with his ministerial colleague, Peter Mandelson, who has been put in charge of the project.

Minister without Portfolio Peter Mandelson explains to BBC Radio why the Government prefers Teflon, in a report for PM by Nicholas Jones Dur: 3'20"

While the contract has still gone abroad, the company running the £250 million Dome project will be able to say that more British workers will be employed on the assembly of the roof.

Under a £14 million contract sealed on Wednesday night, the New York firm Birdair will supply a Teflon-coated glass fibre covering guaranteed to last at least 25 years.