A London 2012 legacy initiative designed to engage and inspire young people around the world through sport is set to be extended after an additional £16m was made available for the scheme.

The 'International Inspiration' project was launched in January in five countries – Azerbaijan, Brazil, India, Palau and Zambia, and it will now be rolled out in five more – Bangladesh, Ghana, Jordan, Mozambique and Trinidad and Tobago. Funding for the next stage of the initiative, which has been formally backed by the International Olympic Committee, has come through a £5.4m contribution from the Department for International Development (DFID). The British Council has also pledged to match future funding up to a total of £10.2m.

DFID and the British Council, along with UNICEF, the Department for Culture, Media and Sport, and the Premier League have already invested £9m in the initiative which aims to create all-inclusive opportunities for young people using physical education. The scheme's organisers have been working with education and sports officials, as well as national Olympic and Paralympic committees, to ensure a lasting legacy is created.

Since January, the programme has helped support a huge drive in physical education in India ahead of the 2010 Commonwealth Games. It has also backed the development of Azerbaijan's new National Sports Development Strategy, promoting sport-for-all. Tessa Jowell, minister for the Olympics and Paralympics, said: "Using sport as a catalyst for change for young people around the world is a cornerstone of our Olympic legacy, and the IOC has chosen to recognise International Inspiration as an official Olympic programme – the first programme of this kind ever to gain IOC backing."

Lord Coe, chair of London 2012, added: "Our vision is to use the power of the Games to inspire change – and changing lives is the driving force behind our plans. Sport can be a great force for good, and the International Inspiration programme will play a real role in improving the lives of young people around the world."