Atilla Ahmet, of Lewisham, south east London, admitted three charges of encouraging others to commit murder.
The revelation came as five men with connections to Ahmet went on trial at Woolwich Crown Court for a number of terror offences, which all five deny.
Prosecutors told the court that one of them, Mohammed Hamid, organised camps attended by some 21 July plotters.
Mr Hamid, 50, of Clapton, east London, stands accused alongside Mousa Brown, 41, of Walthamstow, east London; Kibley da Costa, 24, of West Norwood, south east London; Mohammed Al-Figari, 42, of Tottenham, north London; and Kader Ahmed, 20, of Plaistow, east London.
The prosecution told jurors that Mr Hamid was involved in the radicalising of young Muslims for two years from 2004.
Alleged terrorist training took the form of camping trips and paintballing excursions around Britain, said David Farrell, prosecuting.
Mr Farrell added that the trips were intended to "foster within the participants that they were training for "Jihad" against the "Kuffir", or non-believers".
He said: "A number of young men who attended camps organised by Hamid were in fact involved in attempts to kill and seriously injure passengers on the London transport network on 21 July, 2005."
Ahmet's plea has been disclosed after reporting restrictions were lifted at Woolwich Crown Court.
The jury was told that since Ahmet had entered his guilty plea, Mr Hamid was "the principal offender you are concerned with".
Jurors also heard that Ahmet went to Mr Hamid's home to attend meetings, where Mr Farrell said "aggressive unlawful violence" was promoted.
Mr Farrell added: "At meetings held at Hamid's home address and elsewhere, the methods of Hamid and Ahmet involved the encouragement of the use of unlawful violence in the name of Islam."
The court heard that some of those involved in the failed 21 July attacks also met at Mr Hamid's home.
Among this material were extremist documents including CDs and DVDs containing recordings of murders, beheadings and suicide bombings, he said.
At one meeting Hamid "spoke of six or seven atrocities" before the 2012 Olympics, Mr Farrell said.
And on another occasion he talked about the "magnificent 15" - the 9/11 hijackers in America, it was said.
Brown praised the actions of the 7/7 suicide bombers, responding "yeah, yeah, yeah" when someone at a meeting called them "Fantastic Four", the jury heard.
At another meeting there were references to Finsbury Park Mosque and "the preacher of hate" Abu Hamza, the barrister said.
Ahmet, of Rangefield Road, Bromley, south east London, boasted that American TV channel CNN had labelled him "the number one al Qaida in Europe", it was said.
Mr Farrell told the jury: "You will hear him preach to the group about dying for their belief in Allah and entering paradise.
"Democracy, he preaches, is the number one enemy of Islam."
He was also overheard speaking about his dislike for the Muslim Council of Britain and the Muslim Association of Britain, saying their leaders should be removed because of their failure, in effect, to support his extremist view and their collaboration with non-believers, the barrister added.
Evidence of phone contact between Mr Hamid and the four convicted would-be bombers - Muktar Said Ibrahim, Hussein Osman, Ramzi Mohammed and Yassin Omar - was shown to the jury.
Mr Farrell said that on the evening of 7 July 2005, a text message was sent from Mr Hamid's mobile phone to a mobile owned which was owned by Osman.
It read: "Assalam bro, we fear no-one except ALLAH, we will not change our ways, we are proud to be a Muslim an we will not hide. 8pm Friday at my place be there food an talk AL-QURAN."
Earlier, the jury had heard that Al-Quran was an alias used by Mr Hamid.
Mr Farrell said: "The prosecution do not suggest that Hamid's role in seeking to train and influence those who took part in 21/7 was the only training or influence they received.
"The prosecution's case is that Hamid, assisted by Ahmet, was a recruiter, groomer and corrupter of young Muslims.
Mr Farrell added that Hamid was arrested at a stall in London's Oxford Street in October 2004 alongside Muktar Said Ibrahim, the ringleader of the failed 21 July plot.
Mr Farrell said: "Hamid told the police that his name was 'Osama bin London' and on the way to the police station he said to a police officer 'I've got a bomb and I'm going to blow you all up'."
Jurors were told that Mr Hamid's home was bugged by police from September 2005.
When the defendants were arrested, material including CDs and DVDs containing recordings of murders, beheadings and suicide bombings were seized from their homes, Mr Farrell said.
The case continues.
THE CHARGES
Mohammed Hamid (above) is charged under the Terrorism Act 2006 with providing weapons and terrorist training. He faces additional charges of soliciting murder, and one charge of possessing terrorist documents
Mousa Brown is accused of providing and receiving weapons training
Kibley da Costa is charged under the Terrorism Act 2006 with providing terrorist training and with attending terrorist training camps
Mohammed Al-Figari is charged under the Terrorism Act 2006 with attending terrorist training camps
Kader Ahmed is charged under the Terrorism Act 2006 with attending terrorist training camps
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