The newspaper first talked of the plans last year but they were dismissed as fantasy.
The fantasy is now closer to reality, reports The County Gazette.
Farmer Steve Ling from Nyne-head near Wellington is now confident he will build the velodrome on his farm.
The County Gazette reports that Ling is in discussions with a developer.
A spokesperson for the London 2012 Olympics told the newspaper "we welcome the proposal".
A West Country velodrome could be used as a training base for track teams at the London Olympics.
South Wales has a plush, covered Olympic-standard velodrome. Edinburgh - hometown of kilo gold medal winner Chris Hoy - has Meadowbank, an outdoor stadium but plans for a covered velodrome have stalled.