A CABLE car across the Thames has been approved by Mayor of London Boris Johnson.

The £25m scheme will link the O2 Arena in Greenwich with the Excel exhibition centre across the Thames.

Set to carry 2,500 people an hour and run 50ft above the Thames, the system was approved last night by Deputy Mayor of London Sir Simon Milton.

Planning permission for the scheme has already been approved by Greenwich and Newham Council.

Mr Johnson said: “With permissions signed and sealed we are now a significant step closer to being able to cruise the east London skyline via an elegant cable car spanning the mighty Thames.

"It will be a truly exhilarating way for Londoners and visitors to explore our great city whilst providing a much needed river crossing to support the once-in-a-lifetime regeneration of this easterly quarter of the capital."

Concerns had been raised about the link being at risk from nearby aircraft but these were dismissed by Sir Simon as “extremely low risk”.

It is hoped the cable car will to be completed in time for the Olympics in July 2012.

A contractor is due to be appointed in the spring.