A bitterly opposed waterside development in the heart of Jericho looks set to be rejected.

A report to city councillors said the controversial scheme does not have enough affordable homes and would not be energy efficient.

The scheme to build 54 flats on former British Waterways land sparked one of Oxford's most bitter land disputes in recent years, leading to the closure of the historic Castle Mill Boatyard.

The scheme would also involve the creation of a new Jericho community centre along with a new public square close to the canal.

But after months of protests, involving Northern Lights author Philip Pullman, a major blow has been dealt to developers Spring Residential.

Council officers are recommending the scheme is rejected when it goes before the central, south and west area committee on Tuesday.

The scheme proposed 33 per cent of affordable housing but the city generally requires major new developments to have 50 per cent.

City councillor for Jericho, Susanna Pressel said: "The planning officers have been in dialogue with Spring Residential for many months now and I had expected that they would have reached an agreement on what they felt was acceptable by now."

Ironically, news of the refusal comes as millions queue up to see the story of Lyra on the big screen in The Golden Compass, with some of the most atmospheric scenes set around the canal in Jericho.