The International Basketball Federation (FIBA) has given Britain the target of being a Division A team to be able to take up the hosts' slot for 2012, so the team must now ensure they are promoted from Division B, which runs throughout 2010 and 2011.
British Basketball performance director Chris Spice said: "We certainly don't think it's all over. We've loosely been given the target of being in the A Division and obviously we've been in that division already.
"From our performances over the last couple of weeks we think we are an A Division team. Some of our best players were not available for the relegation round.
"Clearly the responsibility is on the international body to make sure the people who compete (at London 2012) are competitive and we certainly think that by 2012 we will be.
"How things go over the next 12 to 14 months will be critical for us. We'd like to think that by 2011 we'll be back in the A Division."
Britain have no competitive fixtures this year, but Spice - who was a performance director with the Rugby Football Union when England won the World Cup in 2003 - believes that could be to the team's benefit.
"There's no organised competition for us but in some ways that's better because we're able to play the teams we think are appropriate for us to stake our case," he said.
"Our plan is to compete against some mid- to lower-level A Division teams and prove to everyone we're of that standard."
Asked what Britain's Olympic prospects would be should the team not achieve promotion back to Division A, Spice replied: "We just don't know. There's no definitive answer either way so there's no point speculating at this time.
"The main thing for us is to get our own house in order and focus on proving we're capable of being back in the A Division."
