The proposed eco-town near Weston-on-the-Green has been welcomed as "a massive opportunity" for Oxford by the city council's new Labour administration.
After taking control of the council, the Labour group 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 moves to build 4,000 homes on land south of Grenoble Road, near the Kassam Stadium.
And it will tell the Government it believes there is a strong case for both an urban extension of Oxford and the eco-town, north-east of the city.
Deputy leader Ed Turner said: "We're 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's real potential to alleviate congestion problems on the A34."
"It is a massive opportunity. It would be foolish not to grab it with both hands."
Bob Hessian, a spokesman for Weston Front, a campaign group against the eco-town, said: "It seems that Mr Turner's answer to solving Oxford's problems of housing and transport is to dump them on someone else's doorstep, six miles up the road."
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