John Armitt, chairman of the Olympic Delivery Authority (ODA), said: "Due to strong financial management and cost control to date the project is on a sound economic footing."
He said: "I am confident that ODA will be able to save £27m from our budget this year. This saving will be found by continuing to make efficiencies in the way the project is delivered as we have already done in the past."
He gave no firmer details on what would be scaled back, but insisted regular budget updates had "consistently shown work was on schedule and within budget with savings of around £600m already delivered to keep us on track".
Last week the Government revealed hundreds of millions of pounds of cuts across departments and quangos like regional development agencies, CABE and Play England.