Motorists face a record £500 penalty for parking on roads designated for official Olympic traffic during the Games.
London councils are considering towing away vehicles parked on the 109-mile Olympic Route Network to keep it clear for the official Games fleet. Drivers will be hit by a £200 penalty charge and a further release fee of up to £300.
Hundreds of parking attendants are expected to be drafted in from other UK cities to enforce the measures.
Several London councils have held talks with contractors NSL, Apcoa and Vinci to reinforce patrols. Many boroughs favour a two-tier penalty system that would deliver tougher deterrents to out-of-towners.
Catherine West, transport committee chairwoman at umbrella group London Councils, said: "You do not want Mrs Smith from the flats who goes to the pharmacy for headache pills to get her car towed away and a huge £500 fee.
"But when Miss Horsey from Gloucestershire drives to watch the [Olympic equestrian] events in Greenwich Park then they might think: 'Gosh, the ticket's costing me £200'. We want them to use their Oyster card [free to Olympic ticket holders]. This will be the subject of debate next month. We have got to try to have a system that doesn't penalise average London residents but encourages people who could be catching the train and Tube to do just that."
Residents' parking permits may be one way of making the distinction between locals and motorists from elsewhere.
Boroughs may also increase penalties around venues, suburban rail stations and other potential "pinch points" to act as a deterrent.
Transport for London is responsible for the main streets on the Olympic network with boroughs controlling all other roads.
Under the original plans, vehicles parked on the Olympic network were to be removed to the nearest available side streets. But it is feared this would be considered "valet parking" and of no deterrent to motorists.
Councils hope car pounds on the outskirts of London will help deter motorists with the inconvenience of having to retrieve their vehicles.
The fines and release fee are still open to negotiation and to be approved by Mayor Boris Johnson and Transport Secretary Phillip Hammond, who will be sent a formal proposal by the Olympic Development Authority.
