German discount food superstore Aldi has the support of scores of people who want to see a cheap supermarket built in Botley Road.

About 200 people have signed a petition calling on Oxford City Council to give the retailer permission to set up shop on vacant land next to Toys 'R' Us in west Oxford.

However, with the summer flooding still fresh in the memory of many, the Environment Agency said it would challenge the controversial proposals over fears the development could exacerbate future problems.

Now all sides are set to clash at a showdown meeting on Tuesday over what has been described as "one of the most controversial planning applications in the city".

Aldi property director Richard Williams said: "There is not a great deal of choice (in the area).

"Everyone is pushing to make food retailing more convenient - this is another option in an area that is underserved.

"We believe this is an ideal location for a food retailer.

"We would like to avoid a public inquiry and I hope committee members support the applica- tion."

Aldi has more than 5,000 stores across the world and says it can sell products at basement prices.

City councillor Susanna Pressel, who represents Jericho and Osney, said a 200-signature petition in favour of the supermarket had been handed in.

She said: "Many people in West Oxford would prefer to have a good value food shop rather than yet another furniture or electrical store, though some fear increased traffic.

"If I express an opinion at this stage I won't be allowed to vote, but I can say that we'll bear in mind the views of residents and the Environment Agency."

Richard Thurston, chairman of Osney Island Residents' Association, said: "I think it would add pressure to the traffic on Botley Road and that's something I would be resistant to.

"I think there is some appetite for a discount food retailer, but I would be worried about building in the flood plain and the impact on local shops."

The application is similar to the battle to build a Lidl store in Watlington Road, Blackbird Leys. The city council originally refused the retailer permission to open, but the store won its battle and started trading in March.

Michelle Kidd, planning liaison officer for the Environment Agency, said: "Aldi purchased the Botley Road site with outline planning permission in 1999 for a small non-food retail unit.

"The group has since made two planning applications to build a larger food retail unit.

"The first application was rejected on flood risk grounds.

"This year, Aldi made a second application for development on the site.

"We rejected the second application on flood risk grounds - the reasons included the added emphasis placed on the potential impacts of climate change on flood risk as well as our original concerns over disrupting flood flows and flood storage."