The inquiry will take six months to complete and will focus on how Britain can improve its sporting reputation both on and off the pitch.
At the centre of the review will be an investigation into Sport England - a quasi-autonomous non-governmental organisation (quango) paid for by British taxpayers. Sport England's role has been continually questioned by the goverment.
The elite and grass roots of the UKs sporting industry will also be examined. Tessa Jowell, the Minister for Culture, Media and Sport said: "Our review is intended to achieve a clear strategy that will deliver sports policy and will take into account the range of different bodies, such as central government and local government, and will address the disparity between regions."
