The Mirror says Lord Coe and the committee which oversees awards to sports stars saw their recommendation to knight the former England captain overturned.
And it has emerged that a "fierce debate" had broken out at the crucial meeting last November.
Head of the Civil Service Sir Bob Kerslake chairs the main Honours committee, which refused to back Coe's proposal.
There was a split between members who said making him Sir David - and his wife "Lady Posh" - was "too soon."
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