BOROUGH bosses have asked the Government for £500,000, to stop its Olympic dream turning into a congestion nightmare.

Greenwich Council has applied for the money from the Department of Transport's innovation fund, for traffic-calming schemes in the town centre Interest group the Greenwich Society has welcomed the move, as it fears the Olympics and other major developments could bring "gridlock" to the town centre unless something is done.

The money can be spent on various schemes including town centre pedestrianisation and a congestion charge two things the council is refusing to rule out.

Congested roads are a familiar sight to rush hour motorists who drive through the centre of Greenwich and Trafalgar Road.

Ray Smith, from the Greenwich Society, fears this will get even worse unless something is done.

He said: "Traffic is a massive problem here, particularly at peak times. Trafalgar Road is always choc-a-block.

"Sooner or later there will be gridlock and no one will be moving anywhere."

The society is concerned about the impact of schemes such as Millennium Reach and the redevelopment of Greenwich District Hospital.

These, along with the 2012 Olympic Games, will see thousands more people visiting and living in Greenwich.

Mr Smith added: "It is a major problem now but with 60,000 or so extra people coming into SE10 it will get infinitely worse.

"The problem has to be addressed. We welcome the fact something is being done."

Greenwich Council says it will hold a public consultation next year, so residents can have their say.

For now it is refusing to rule anything in or out but admits it has a "long held ambition to pedestrianise at least part of the town centre".

A spokesman said: "This is not about one solution. While we all complain about traffic, finding common ground about how to deal with it will be more challenging."

The council will find out if its funding bid has been successful early next year.