West Ham will pay £15m for a 99-year lease on the £429m venue on which conversion costs could reach £190m.
Richard Caborn: "I do welcome the fact that the future of the stadium has finally been secured.
"But we should also realise that the public sector is picking up the tab.
"This is the biggest mistake of the Olympics and lessons should be learned from this.
"West Ham are basically getting a stadium costing more than £600m for just £15m and a small amount in annual rent.
"The mistake was made in 2006-7 when they [Olympic Board] ruled football out of a retro-fit design as was done successfully in Manchester with the Commonwealth Games stadium.
"I suggested retractable seating like the Stade de France in Paris but they insisted it should be a 25,000-seat athletics stadium.
"Time and again mistakes are made with Olympic Stadiums and the lessons should be learned for any future similar projects."
Former Newcastle captain Kevin Nolan believes the club's move to the Olympic Stadium could help them join the Barclays Premier League elite.
The Hammers have been handed the keys for the Olympic Stadium after a deal for the London 2012 centrepiece was finally agreed, with the club set to move in ahead of the 2016/17 season.
Kevin Nolan: "You can see that this is a club that has always had the up-and-downs because they haven't been able to splash the cash.
"They haven't had the stadium to create the revenue, so I think this is the perfect opportunity to put this club in amongst the big boys and we have got to make sure now that we stabilise the club in the fact we make sure it is still a Premier League club and even fighting for European places by the time we move here."