A new era of co-operation between Oxford City and Oxfordshire County councils was ushered in yesterday after the authorities agreed a £2.5m deal over the running of park-and-ride sites.

At a date yet to be decided, County Hall will take over the running of the city council's three park-and-ride sites, Redbridge, Seacourt and Pear Tree.

Parking at the city-run sites costs £1 - in addition to a bus fare into the city, whereas parking is free at the Thornhill and Water Eaton sites, which are run by the county council.

Yesterday's agreement, which was taken at a meeting of the Town Hall's decision-making executive, means County Hall will take over the operation of all five sites for 10 years and pay the city £250,000-a-year for the privilege.

After 10 years, Redbridge, Seacourt and Pear Tree will all revert back to city council control.

As part of negotiations between the two councils, a new "liaison committee" has been set up with the expressed aim of avoiding embarrassing, public spats over areas of disagreement.

The two councils have been at loggerheads recently, disagreeing vocally on a range of issues, notably paid-for parking permits for city residents.

City council leader John Goddard said: "This is a good deal.

"We will discuss things with each other - we intend to work more consensually together."