HIGHLY TOXIC waste will be removed from the waters of Sydney Harbour near the site of the 2000 Olympic Games in a cleanup costing around £10 million, the New South Wales state government said yesterday.

The operation involves the removal of dioxin contaminants from sediment in Homebush Bay, which is adjacent to the main Olympic complex. Swimming in "that part of Sydney Harbour is prohibited because of the heavy pollution.

"It will provide a safe, clean bay for the eyes of the world in the year 2000," NSW state ports minister Carl Scully said in a statement.

"But, more importantly, it will provide a safe, clean bay for the people of New South Wales - an enduring community legacy," he said.