Children's PE skills and participation are improving in primary schools as a result of funding pledged to build on the London 2012 Olympic legacy.
A study of 22 schools by inspection body Ofsted found that all of them were putting the extra money to good use, improving the quality of education and the range of sports on offer.
The funding is being employed for a variety of purposes, including providing training for those in teaching jobs and employing sports coaches or specialist teachers.
Collaboration with local sports clubs and other schools is another trend identified by Ofsted, providing better PE teaching and more sporting opportunities.
The financial support was found to be improving pupils' PE skills and participation rates. However, many headteachers said they had been given the money without clear advice regarding its use and stated that they would welcome guidance from the Department for Education so that the benefits of the funding would be sustained over the long term.
Ofsted has called on schools to examine more carefully how they could show the impact of the investment on PE and sport improvements. It also recommended that institutions consider better ways of using the money to improve pupils' wellbeing, for example by tackling obesity.
Sean Harford, Ofsted national director for schools policy, said: "Sport has the power to transform young lives. It is encouraging that schools are using the Primary PE and Sport Premium effectively.
"This may unearth a future Olympic star, but more importantly it is allowing all children to fully take part in PE and enjoy a greater range of sports."
He added that another major benefit of PE is that it helps to build youngsters' characters and the best institutions incorporate it as an "integral part" of their ethos.
Other recommendations made by the inspection body include the setting of clear targets to show how the funding has led to improvements and encouraging pupils who are less keen on PE to participate more and enjoy the activities.
Posted by Theo Foulds