THE proposed eco-town near Weston-on-the-Green has been welcomed as "a massive opportunity" for Oxford, by the new Town Hall administration.

The incoming Labour administration has wasted little time in signalling its backing for the 15,000-home settlement off the A34.

But the city council has made clear that the Weston Otmoor eco-town must not be viewed as an alternative to the scheme to build 4,000 homes near the Kassam Stadium.

And it will tell the Government that it believes there is a strong case for both an urban extension of Oxford to the south and an eco-town a few miles north of the city.

Deputy group leader Ed Turner said: "We are very positive about the idea of the eco-town. The key thing is the real opportunity it would deliver to improve rail links between Bicester, Oxford and London.

"There is real potential to alleviate congestion problems on the A34 as well as the chronic capacity rail problems between Oxford, Reading and London. It is a massive opportunity. It would be foolish not to grab it with both hands."

Keith Mitchell, the leader of Oxfordshire County Council, said: "It seems the city council wants to build houses everywhere."

The proposal to build an eco-town on farmland close to the A34-M40 junction recently made it on to the Government shortlist of 15 potential settlements. Weston-on-the Green residents and surrounding villages have launched a campaign to oppose the move.

The eco-town developer, Parkridge, has pledged to invest in public transport, including helping to pay for the East-West Rail Link between Oxford, Bicester and Milton Keynes.

Last week, Government officials met the developer and representatives from Cherwell district and Oxfordshire county councils to discuss how the planning process would move forward.