The president of the International Amateur Athletic Federation (IAAF) met Banks and David Moorcroft, head of the British governing body, on the second day of the World Cup here.
IAAF spokesman Giorgio Reineri said Banks had told Nebiolo that 320 million pounds sterling ($512 million) would be spent renovating the stadium.
Banks also said 2003 would commemorate the 50th anniversary of the first sub-four minute mile run by Sir Roger Bannister in 1953.
Berlin, Tokyo, Budapest and Paris are bidding to stage the 2003 world championships if Paris is unsuccessful in its bid for the 2001 championships.
Paris, Edmonton in Canada, New Delhi and Stanford in California are the candidates for the 2001 championships.
A decision on the venue for 2001 will be made at the IAAF's headquarters in Monaco on November 22.
Seville will stage the 1999 championships.
Nebiolo also warned Banks that British sporting administrators should consult the IAAF before deciding on the dates for the 2002 Manchester Commonwealth Games.
At a news conference on the eve of the World Cup, Nebiolo was asked about criticism from the Commonwealth Games authorities on the clash of dates this year between the Kuala Lumpur Games and the World Cup. The Commonwealth Games athletics programme starts next week immediately after the Cup.
"Track and field is controlled by us and not by the Commonwealth Games," Nebiolo replied.
"For me it was a great mistake made by the Commonwealth Games to try and put the same days of athletics on the same days as the World Cup.
"This is not acceptable."
Reuters
