The direct funding scheme for school sport, announced last year, is going to be extended for a further five years.
Each year primary schools will continue to receive £8,000, plus £5 per pupil.
As well as promoting good health, Mr Cameron says, school sport has an important role in building “confidence and a sense of achievement”.
The funding known as the Primary PE and Sport Premium, provides money directly to primary school head teachers, carrying on the sporting legacy of the Olympics.
There have been repeated warnings about childhood obesity and lack of exercise and the funding is meant to improve sports lessons, such as paying for specialist coaching, equipment or to help after-school clubs.
There have also been calls to improve school sport, with Ofsted warning last year that there was too little strenuous exercise in PE lessons.
The cross-party Education Select Committee also reported that many schools lacked the facilities needed for youngsters to get involved in sport.
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