Rio de Janeiro Mayor Eduardo Paes and Australian Olympic Team Chef de Mission Kitty Chiller have made peace.

In a ceremony designed to keep everyone happy, including the world's media, Mr Paes delivered the keys of the city and of the Olympic Village apartments designated for the Australian team to Ms Chiller on Wednesday, local time.

Ms Chiller had complained about the "unliveable", unfinished state of the accommodation facilities over the weekend, unleashing a torrent of grievances from other delegations concerned about exposed wiring, leaking pipes and lack of cleanliness.

Mr Paes retorted with a kangaroo quip - he was considering putting one outside the building to help the Australians to fell at home - that reverberated badly in the Brazilian press.

But on Wednesday, he said the Australian team "was absolutely right to have complained about the building standards" and his joke was merely a reference to a mascot that was "mistimed".

"It generated a misunderstanding," G1 reported him as saying.

"I want the athletes to feel at home and am very happy to be able to deliver the keys of the city to the chief of the Australian Olympic team. I am sure they will enjoy Rio very much and hope they will win a lot of medals too."

Ms Chiller returned the goodwill with the presentation of a toy kangaroo and an Australian team shirt to Mr Paes.

Mr Paes also officially opened the Rio Olympics Media Centre on Wednesday, declaring the village problems practically fixed.

"This will be the best Olympic Village in history," he said.

Delegations from Portugal, Spain, Sweden had also complained. Others, including the United States, had requested modifications.

Nearly 3000 athletes and team members were expected to be in their apartments by the end of Wednesday.