Los Angeles has reached an agreement with international Olympic leaders that will open the way for the city to host the 2028 Summer Games, while ceding the 2024 Games to rival Paris.

The arrangement would make LA a three-time Olympic city, after hosting the 1932 and 1984 Games.

With the agreement, the city is taking "a major step toward bringing the Games back to our city for the first time in a generation," Mayor Eric Garcetti said in a statement.

He called it a "historic day for Los Angeles, for the United States" and the Olympic movement.

The agreement follows a vote earlier this month by the International Olympic Committee to seek a deal to award the 2024 and 2028 Games. Paris is the only city left to host the 2024 Games.

The Los Angeles City Council and US Olympic Committee board of directors will consider the agreement for approval in August.

If approved, the IOC, LA and Paris may enter a three-part agreement, clearing the way for the IOC to simultaneously award the 2024 Games to Paris, and the 2028 Games to LA.

The IOC vote is scheduled for September, in Lima, Peru.

In embracing what amounted to the second-place prize and an 11-year wait, LA will receive a financial sweetener.

Under the terms of the deal, the IOC will advance funds to the Los Angeles organising committee to recognise the extended planning period and to increase youth sports programs leading up to the Games.

The IOC contribution could exceed $US2 billion, according to LA officials.

That figure takes into account the estimated value of existing sponsor agreements that would be renewed, as well as potential new marketing deals.

LA and Paris were the last two bids remaining after a tumultuous process that exposed the unwillingness of cities to bear the financial burden of hosting an event that has become synonymous with cost overruns.