Organisers of the Tokyo 2020 Olympics and Paralympics reportedly estimate the postponement of the Games is set to cost an additional $1.9 billion (£1.4 billion/€1.6 billion).
Tokyo 2020, the Tokyo Metropolitan Government and the Japanese Government will determine next month how much of the additional cost each will take on, Kyodo News reports.
The Games were postponed as a result of the COVID-19 pandemic, with the Olympics now scheduled for July 23 to August 8 and the Paralympics set to be held from August 24 to September 5.
Additional costs have surfaced from expenses related to securing venues, equipment rental, storage fees, and extra labour.
In May, International Olympic Committee (IOC) President Thomas Bach predicted the postponement of Tokyo 2020 would cost the governing body $800 million (£601 million/€669 million).
With $150 million (£113 million/€125 million) of this figure set to form an "aid package" for the Olympic Movement, the remainder was put aside for the organisation of the Games.
Since then, Tokyo 2020 and the IOC have announced 50 cost-cutting measures which are claimed to save $288 million (£217 million/€241 million).
These include a cut to the number of officials attending the Games, infrastructure reforms that will reduce the amount of lighting and additional temporary power supplies for venues, and the elimination of ceremonies at the Athletes' Village and prior to the Opening Ceremony.
The simplification measures have been dubbed the "Tokyo Model" by Tokyo 2020 and the IOC, with suggestions future host countries can learn from the cost-cutting steps.
Tokyo 2020 was set to cost around $13 billion (£9.7 billion/€10.8 billion) before it was postponed in March.
Of this, the Organising Committee was due to cover $5.8 billion (£4.4 billion/€4.8 billion), the Tokyo Metropolitan Government $5.7 billion (£4.3 billion/€4.8 billion) and the Japanese Government the remaining $1.4 billion (£1 billion/€1.2 billion)
Organisers are continuing to devise coronavirus countermeasures to ensure the Games can take place safely next year.
The wearing of face masks and social distancing is expected to be mandatory, while athletes will be encouraged to limit their stay in Japan after competition.
Tokyo 2020 chief executive Toshirō Mutō has said measures for fans, including non-Japanese residents, would be drawn up by the spring, with Tokyo Governor Yuriko Koike revealing her hopes of holding the Games with "full spectators present".
Hopes of a successful staging of the Games have been boosted by progress in the development of COVID-19 vaccines, although it may still be some time before they are available to the wider public.