Deputy Secretary for Justice Horace Cheung revealed on Saturday that the pilot scheme for sports dispute resolution will be rolled out in the latter half of this year.

The idea was first unveiled in the Policy Address last year with the aim of promoting sports arbitration.

Cheung told a television programme that the scheme will run for two to three years.

While it is not mandatory for subvented sports associations to participate in the test run, he said they are highly encouraged to do so.

He said he believes sports groups can improve their governance by joining the scheme.

"They can show the public that when they have internal issues that cannot be resolved, they are willing to solve them through a fair and open system which has good value for money," he said.

"It is not expensive and won't take much time. And it won't hinder the development of elite athletes."

Cheung noted that athletes participating in the Olympics have limited time and have to undergo intensive training.

If the matter is dealt in court, the athletes will lose the chance to participate in the competition due to ongoing legal procedures, he said.

The deputy justice chief pointed out that the arbitration rules will be set up by the middle of the year.

He said the government will look for a suitable arbitration body in the coming months, which has to be experienced and have close contact with the sports industry.

The government will subsidise part of the cost of arbitration during the test run, he added.