The IOC backed London organizers Friday in their dispute with the British Olympic Association over any financial surplus from the 2012 Games.
The BOA refused to accept the IOC decision and said it would pursue its case in the Court of Arbitration for Sport for a ''final and binding'' ruling.
The International Olympic Committee examined the BOA's claim that it should receive a greater share of any profit, an issue which created a public split between two key British bodies involved in delivering the games.
The BOA, which is entitled to a 20 percent cut of any surplus, argued that the cost of the Paralympics should not be taken into account. The London organizing committee, or LOCOG, maintained the Olympics and Paralympics should be counted together.
The IOC, which was approached by both sides to mediate, sided with LOCOG.
''Having studied the documents and the past recent history of the games bidding process, we have decided that the word 'surplus' clearly represents the financial results from the staging of the Olympic Games and the Paralympic Games combined,'' the IOC said.
''The IOC would like to see a swift resolution to this dispute - to allow all parties to concentrate on delivering what will be outstanding games in London next year.''
The rift flared last week, exposing a rare break in unity as London marked the 500-day countdown to the games and the launch of ticket sales on Tuesday.
Although the IOC said it was asked to reach ''a final and binding decision'' on the issue, the BOA said it wasn't giving up.
The BOA announced last week it was taking its case to CAS, the arbitration court in Lausanne, Switzerland.
The BOA said Friday it would continue with its CAS appeal, a decision that means the British body is directly challenging the IOC.
''Decisions made by CAS are final and binding, and CAS is the agreed forum for resolution as specified by the Olympic Charter and the key contractual agreements between the various Olympic stakeholders,'' the BOA said.
The BOA insisted it had ''an outstanding working relationship'' with London organizers
''A difference of opinion on one issue - albeit an important issue - is in no way typical or representative of the relationship between our two organizations,'' the statement said.
LOCOG, headed by two-time Olympic 1,500-meter champion Sebastian Coe, said it considers the case resolved.
''We are pleased that the IOC has ruled on this technical point confirming we should continue to determine any surplus on the basis of combined costs and revenues from both the Olympic and Paralympic Games,'' it said. ''Now this is settled we look forward to moving ahead together with the BOA to realize our shared vision of hosting a spectacular Olympic and Paralympic Games.''
The BOA, which relies on private funding and receives no government money, has said it faces a budget shortfall of up to $16 million that threatens funding of some support programs for the British team competing in next year's games on home soil.
In 2005, the BOA sold the marketing rights for the use of the Olympic rings in Britain to LOCOG for about $43 million. The BOA has since secured an additional $9 million.
