The plan would affect over 260,000 households and would cost over $4.5bn (£2.9bn), Rio Mayor Eduardo Paes said.
Hundreds of Rio's favelas will be re-built and 123 of the most "at risk" slums will be torn down.
Approximately 13,000 families in the 123 areas to be cleared would be relocated, Mr Paes said.
Rio plans to clear slums ahead of 2016 Olympic Games
July 27, 2010