A new survey of school sports leaders reveals that they expect to see a fall in competitive sporting events provided in schools.
The sports leaders also expect to see fewer children participating in at least two hours of sport each week.
David Cameron promised a rethink on school sport after plans to cut all funding provoked an angry backlash from children, teachers and sports stars.
Andy Burnham MP, Labour's Shadow Education Secretary, said:
"In 1997, Labour inherited a weak school sports system. We changed that to ensure that every child had the opportunity to take part in high quality sport, including competitive sport.
"Michael Gove’s ill-informed decision to scrap the entire grant for school sports prompted an angry backlash – and forced the Prime Minister to promise a rethink. But this survey shows that nothing has changed.
“A world-leading school sport system is being dismantled before our eyes. It is hard to imagine a more depressing sight in the run-up to an Olympic Games on home soil.
“Young people are bearing the brunt of Michael Gove's poor decision-making. They deserve better than this but it's what we've come to expect from this incompetent Government. By breaking promise after promise, they are losing support and goodwill.”
Tessa Jowell MP, Labour's Shadow Olympics Minister, said:
"In just over a year's time, the country will be fired up with excitement about hosting the Olympics. It is therefore beyond belief that the Tory-led Government should at the same time oversee the shrinking of school sport.
"This survey's pessimistic conclusions point to a comprehensive collapse in confidence for the Government's stated view that schools will continue funding sport when they are given less money to do so.
"It is almost too late, but even at this moment, Michael Gove owes it to the children of this country to think again."