"Yes, I think world records are very possible at these Olympics, with Usain Bolt and David Rudisha as the biggest favourites," Diack, President of International Association of Athletics Federations ( IAAF) said at a press conference in the British Library on Tuesday.
Diack also indicated he may be going for his last term in office, but left people guessing as to his favourite candidate.
"We have some very young and good people in the ( IAAF) Council and I am sure I will leave the federation in very able hands when I go for my rocking chair and start writing my memoirs," he said.
He mentioned Lord Sebastian Coe, who is the chairman of the organising committee of this Olympics, Morocco's former Olympic champion Nawal el Moutawakel, who sits on the International Olympic Committee (IOC) and also Ukraine's former pole vault world champion, Sergey Bubka, without saying his preference.
"These people have done a fantastic job and I am sure athletics will be in very able hands," he said. Diack defended the inclusion of South Africa's amputee athlete Oscar Pistorius in the Olympics, although he
will also run in the Paralympic Games, which will start immediately after the Olympics.
Pistorius, who grew up without normal legs, has caused sensation with his blade legs. He runs in the 4x100m relay.
"This guy can play rugby and do virtually everything that able bodies persons can do. He wants to be seen as a normal person and we cannot deny him that right," he said. But he said the IAAF would request that he runs in first race, where he is more comfortable as opposed to the other legs where athletes change lanes.
President Diack said the IAAF held successful World Indoors and World Junior Championships in Istanbul and Barcelona this year. He added in good measure that when athletics start tomorrow, the issue of empty seats may be resolved because they expect huge crowds at the stadium.