BAGHDAD, July 4 Iraq is to construct a “Sport City” in the southern oil hub of Basra to host the Gulf Cup at the end of 2012, government spokesman Ali al-Dabbagh said on Saturday.

“The council of ministers, on the recommendation of the minister for youth and Sports freed up $446 million to build a 146 hectare modern complex inspired by the architectural style of Basra,” he said.

In January 2009, Gulf football chiefs accepted Iraq's request to host the 21st edition of the tournament.

Youth and Sports Ministry spokesman Assifa Moussa said the complex would consist of a 65,000 capacity main stadium, a 10,000 seat arena and four smaller training stadiums, each with 400 seats.

A sporting village consisting of eight buildings each housing 16 apartments will also be built under the project, led by an Iraqi company working in association with two US firms, Moussa added.—AFP