The four-time Olympic champion had suffered a disappointing week in Melbourne, with disqualification from the team sprint the worst possible start.
He was then beaten by British rival Jason Kenny in the sprint and forced to settle for bronze.
So victory in the keirin, a win he admitted seemed improbable considering his poor position with just 200 metres to go, was a real boost.
“This week has been a kick up the backside and it makes you determined to go into London with all guns blazing,” said Hoy.
“There is a massive goal on the horizon and the next time I’m racing will be at the Olympics.
“I don’t have a plan beyond that – the one thing I know is after London I’m going to take a break for a couple of months.”
Competing at the 2014 Commonwealth Games in Glasgow, where the velodrome is named after him, could be the ideal way to bring down the curtain on the 36-year old’s storied career.
But Hoy acknowledges this summer’s Olympics is likely to define him. Another gold and he’ll tie with Sir Steve Redgrave as Britain’s most successful Olympian, two and he’ll be Team GB’s undisputed greatest.
His keirin victory in Melbourne has surely wrapped up selection for that event but the men’s sprint place remains wide open, with new rules meaning nations can only enter one cyclist per event.
Hoy has beaten Kenny three times in five recent encounters but a defeat at the World Championships was a major blow to his hopes of a three-pronged medal campaign.
“I was frustrated after the sprint, knowing I should have performed better,” he told British Cycling.
“It’s great to bounce back and I hoped I could make amends.
“The decision about the sprint is up to the selection panel now. Whether I get it or Jason gets it, we’ll have a great medal chance in the sprint.”
Australia finished top nation at the track cycling World Championships but Great Britain topped the medal table for Olympic events.
Hoy’s keirin gold was their fifth in the ten events that will be contested on this summer’s schedule, Australia – Britain’s biggest rivals on the track – won three Olympic events.
© Sportsbeat 2012
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