It is set to be a two-horse race between Bermuda and Prince Edward Island as to who hosts the 2013 Island Games — the first ever to be held on the western side of the Atlantic.

Both islands have formally declared their intentions to bid for the hosting rights, and have until the end of the year to present their packages to the Island Games Association (IGA). The final decision will be taken in Aland next summer.

Bermuda had been bidding for the 2011 Games, but it was awarded to the Isle of Wight who beat them by the narrow margin of 30 votes to 25.

The estimated cost of hosting the Games is $3 million, but it is believed the financial benefits could more than cover the sum in terms of tourism.

Jon Beard (pictured), chairman of the Bermuda Island Games Association, said discussions would be held with the Ministry of Youth, Sport and Recreation, as well as the Ministry of Tourism to ensure a strong bid.

Jörgen Pettersson, chairman of the International Island Games Association, said he was pleased with the competition between the two islands.

"We are delighted to have two alternatives for our members to choose between," said Pettersson. "By submitting their intentions to bid, both Bermuda and Prince Edward Island have shown the other member islands they are prepared to take on the huge responsibility and the challenge of hosting the Island Games."

By 2013 the Centre Core of the National Sports Centre should be complete, which could represent a trump card in Bermuda's pack.

Their opposition, Prince Edward Island, is a Canadian province and is the 104th largest island in the world with a population of around 135,000.

Bermuda's largest ever contingent of athletes arrived back from the 2007 Island Games in Rhodes in July with 40 medals. They finished ninth in the overall medal table.

Aland is the host for the Island Games in 2009, while the Isle of Wight takes on the task in 2011.