Oxford University is preparing for the latest round in its battle to create a £29m book depository for the Bodleian Library.

The university says the depository on the Osney Mead industrial estate, with a capacity for eight million books, is crucial to the long-term future of the world-famous library in Broad Street.

The city council turned down the proposals last year, prompting the university to appeal.

A planning inquiry will now be held at Oxford Town Hall from July 1-11.

The university decided to appeal after the council refused planning permission for the depository because of concerns over possible flooding and the impact the building could have on views of Oxford's dreaming spires.

Colin Cook, Labour city councillor for Jericho and Osney, said: "I will be presenting evidence on behalf of the city council, with John Goddard and Elise Benjamin.

"The reasons for refusal we will focus on will be the effect of the building on views from outside and within the city, the height of the building, and concerns about its carbon footprint.

"We will also suggest the university has not looked at suitable alternative sites."

Mr Cook added that concerns over flooding would not be put forward as a main reason for refusal because the raised structure of the depository should be able to protect books inside.

In March, Julian Blackwell gave a £5m donation to the Bodleian Library and librarians said ambitious plans to refurbish the New Bodleian would have to be put on hold if the depository does not get the go-ahead.

The renovation project, expected to start in 2010 and finish in 2012, will only happen if the Bodleian can free up some space in the library by building the depository.

The Bodleian's collection includes the papers of six British prime ministers, a Gutenberg Bible, Lord Of The Rings author JRR Tolkien's papers, a quarter of the original copies of the Magna Carta, and more than 10,000 medieval manuscripts.

In September, the council's strategic development control committee granted the university planning permission but the decision was reversed by a meeting of all councillors in November.

The university acquires 5,000 books a week. At present, it pays £360,000 a year to store millions of books at a disused salt mine in Cheshire, but the cost is set to rise to £450,000. There is also a Bodleian store in Nuneham Courtenay with 1.3 million volumes.