Sochi will vie alongside two other cities - Austria's Salzburg and South Korea's PyeongChang - which will now enter a three-way race to decide who hosts the games after the result was announced Thursday by the International Olympic Committee.
"The most important thing now is to prepare our bid book," Dmitry Chernyshenko said, adding that work had already substantially advanced.
"We can already rejoice - Sochi can already try on the Olympic rings," Chernyshenko said.
He added that the bidding committee would analyze a report from the International Olympic Committee and offer an interesting concept for the 2014 Olympics.
Sochi bid for the 1998 and 2002 Winter Olympics, but failed to win the right to host the Games largely because of its poor-quality Soviet-era infrastructure.
Last week Russian Economic Development and Trade Minster German Gref said that the government would allocate unprecedented 190 billion rubles ($7 billion) for Sochi if it won the right to host the 2014 Winter Olympics.
Four other cities had initially also bid for the XXII Olympic Winter Games: Almaty (Kazakhstan), Borjomi (Georgia), Jaca (Spain), and Sofia (Bulgaria).
The winning city in the remaining trio for the 2014 event will be unveiled in July 2007 in Guatemala City.
Salzburg bidders were equally optimistic about their chances but said they did not wish to speak about their rivals.
In early June, the Russian government adopted a $12-billion federal program to develop Sochi as a mountain resort until 2014.
The program will create modern infrastructure, including a large international sports complex, a central stadium, a bobsleigh run - the only in Russia - and a hockey stadium. A total of 11 sporting facilities will be grouped into two complexes to accommodate about 200,000 seats.
