Oxford and Cherwell College has been transformed since it was created just under 18 months ago by merging failing colleges, according to Ofsted.

Oxford College and North Oxfordshire College at Banbury, which were found to have inadequate management in previous inspections, merged with Rycotewood College in Thame in August 2003.

Inspectors from the Office for Standards in Education visited in November and found services transformed.

The college, which has more than 15,300 Students studying at campuses in Oxford and Banbury, was praised for strong leadership by governors and the executive team.

Other strengths were improved retention and pass rates, good teaching of adults, strategies to widen participation and partnerships with schools and community groups.

In 2004, 60.7 per cent of students achieved A-Level passes at grades A-C, compared with 52 per cent the previous year.

Inspectors found the college had made a significant step forward, with the proportion of good or better lessons observed by inspectors "significantly higher" than in previous inspections.

Provision for visual arts, English language and foundation programmes were all described as good. Science and maths, performing arts, health, social care and public services, humanities, English for speakers of other languages and informations and communications technology were satisfactory.

Engineering, technology and manufacturing provision, along with business studies, were described as unsatisfactory.

Students questioned for the report liked the friendly, supportive staff, the adult atmosphere and the wide choice of courses.

Inspectors also found that staff morale had improved and that there was a sense that a single college had emerged.

While the college provides "satisfactory value for money", areas for improvement include provision for work-based learning, the use of individual learning plans, attendance and punctuality and social facilities.

The report said: "Excellent progress has been made in a short time."

Principal Sally Dicketts said: "I am delighted, but we still believe we have a long way to go to become the excellent college we know we can be."