IDB will provide approximately US$9bn for projects to prepare Brazil for the 2014 World Cup, local daily Valor Online reported.
"Over the next four years, IDB intends to concentrate 80% of its total investment plan of US$10bn-12bn on preparing the 12 host cities for the sporting event," regional IDB representative Fernando Carrillo-Flórez was quoted as saying.
The financing will be supplemented by investments from the federal, state, and municipal governments.
Most of the funds will be used for road infrastructure, public transport and sanitation initiatives, according to Carrillo-Flórez.
The World Cup host cities are Rio de Janeiro, São Paulo, Brasília, Salvador, Belo Horizonte, Cuiabá, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre and Recife.