Mr Hain's direct rule team has repeatedly dismissed calls for a new sports stadium for Northern Ireland to be located in Belfast rather than the former Maze Prison site near Lisburn.

But, comparing the Millennium Stadium in Cardiff to the new Wembley Stadium in London at the weekend, Mr Hain said that holding events in a city centre rather than the suburbs created a "wonderful atmosphere".

Mr Hain told BBC Radio Five Live the Millennium Stadium was "probably one of the best in the world".

He emphasised the advantage of it being "right in the centre of Cardiff" , and continued: "? there's a wonderful atmosphere of people milling around the streets, which become pedestrianised, coming in and out of pubs and restaurants and cafes and flooding into the ground.

"And it's a great sense of occasion, much more so, I think, than it will be when the ... new Wembley Stadium opens, because Wembley is in a suburb rather than a city centre."

The comments have met with approval from many of those opposed to the siting of the stadium at the former prison, who claim it will be hard for supporters to reach.

"This obviously vindicates what we and others have been saying in that a stadium in a city centre is what would be best for Northern Ireland, and even the Secretary of State knows that's the case," said Gary McAllister, a spokesman for the Amalgamation of Official Northern Ireland Supporters' Clubs.

"We would again call on government to look at the whole stadium project and consider what would be best for sport in Northern Ireland. What's good enough for the rest of the UK should be good enough for us in Northern Ireland as well."

Belfast councillor Bobby Stoker said he also welcomed the Secretary of State's comments.

"It maybe shows there is still a bit of wit left in government after all, that they do recognise a stadium should be located in the city centre, and not miles outside the main population base," he said.

However, Lagan Valley MP Jeffrey Donaldson said the case remained strong for the siting of the stadium near Lisburn.

Mr Hain's comments followed his attendance on Saturday at Croke Park in Dublin - another acclaimed city centre stadium - for the historic rugby match between Ireland and England.