John Lewis has moved to end speculation that it is preparing to pull out of Oxford's £330m Westgate redevelopment.

With the scheme being put on hold, and the developers reviewing how the long-awaited new shopping centre would be financed, the withdrawal of John Lewis would have delivered a hammer blow to the scheme.

It emerged this week that significant aspects of the scheme are set to be changed in a bid to control costs in the face of the worldwide economic slump.

But John Lewis, whose department store is viewed as being the development's flagship store, delivered a welcome boost by reaffirming its continued commitment to the project.

Jeremy Collins, John Lewis's head of retail development, said: "John Lewis are totally committed to the project.

"And we continue to work very closely with the council and Capital Shopping Centres to bring it to fruition."

But it is now unclear how much of the original Westgate plans will remain unaltered.

A source at the developer, Westgate Partnership — formed by Capital Shopping Centres — said: "We are looking at how the scheme might be modified to ensure its financial viability."

The Westgate Partnership also reiterated its determination to deliver the massive new shopping area.