A multi-million pound sports village could be built in Bicester by the time the Olympic flame is lit for London 2012.

Cherwell District Council this week gave a thumbs up to the plan, which would see new facilities for a whole range of different sports.

The idea is to set aside 17 hectares of land for a £6m facility to be built as part of the new south west housing development.

Completion is planned for 2012, but this is dependent on when developers start building homes.

Bicester Athletic Club chairman Steve Flynn said: "We firmly believe this sports village will enable many more youngsters in the town to get involved in sport "We will be able to offer athletics to a whole range of age groups. I have seen the early plans and they are tremendous."

The district council would acquire the land as part of an agreement for the new south west Bicester housing development. This would include more than 1,500 new houses, a link road, two primary schools, a hotel and a park-and-ride scheme.

For several years the houses have been earmarked for farmland between Bicester and Chesterton as part of Cherwell District Council's future planning policy.

The council would seek additional funding for the project from Sport England. George Reynolds, Cherwell's community, health and environment chief, said: "There is going to be a growth in sports participation. Coupled with a growing population, we want to be sure Bicester has first-rate facilities to meet the demand.

"Bicester sports village really will be a place where excellence is achieved through participation." Cherwell is expected to work with Bicester Town Council, Oxfordshire County Council and local sports clubs to develop the details of the sports village.

Town council leader Debbie Pickford said: "We have been working on this idea for a very long time. It will encourage people of all ages to take part in sport."

David Hudson, deputy headteacher at Bicester Community College, said: "Sport is popular here at the college and the proposed sports village should support and enhance the wide range of sporting opportunities we provide.

"It will be a welcome addition to the excellent athletics facilities we are able to offer our students via Bicester Athletic Club.

"The new facilities will act as an inspiration to our student community – especially relevant at the time of the 2012 Olympics."