Plans to double the size of Kidlington's Sainsbury's superstore have suffered the latest setback at London's Court of Appeal.

Three of the country's top judges ruled that Deputy Prime Minister John Prescott was entitled to refuse planning permission for a 1,367 sq m extension to the store in Oxford Road.

The judges' ruling came after they allowed an appeal against an earlier High Court ruling that Mr Prescott was wrong.

So far, the expansion plans have found favour with Cherwell District Council, one of Mr Prescott's planning inspectors and High Court judge, Mr Justice Collins.

In light of the decision, Sainsbury's will now have to challenge the ruling in the House of Lords or launch a fresh planning application.

Store manager Vince Grimble was not available for comment but Carl Smith, clerk to Gosford and Water Eaton parish council, said: "I know Kidlington parish council is opposed to this extension because it is concerned about the effect it will have on the local shops.

"Our parishioners have mixed feelings about it -- they would welcome a better supermarket but there are concerns about lorries coming in through the night and the noise that would generate."

Last July in the High Court, Mr Justice Collins ordered Mr Prescott to reconsider the matter, giving Sainsbury's a second chance at winning planning permission.

However, the Appeal Court has overturned that decision, ruling that Mr Prescott was right all along.

Sainsbury's claims the extension would improve the level of facilities available to customers and increase the range of goods on offer.

The superstore claimed Mr Prescott failed to adequately explain his conclusion that despite an £8.5m growth in sales of convenience goods since 1991, the supermarket had failed to show a need for extra floorspace.

Mr Prescott was satisfied with the evidence of increased sales figures, which are likely to grow by a further £2.3m by 2006, but found that this only showed an increase in customers' expenditure, rather than the existence of any unmet demand in Kidlington.

Speaking in the Court of Appeal, Lord Justice Sedley advised Sainsbury's to make a second attempt at securing planning permission and added: "We, for our part, note that there is nothing to stop them trying again, taking account of the Secretary of State's reasons for rejecting their present application."

The judge refused Sainsbury's permission to take their case to the House of Lords, so the superstore will have to apply direct to the Law Lords if they wish to appeal.