The Green Belt on the edge of Oxford has been saved from the bulldozers - for now.

A Government-appointed panel of planning inspectors has backed the county council's wish to see the extra housing needed in the county built in outlying towns such as Didcot and Bicester in a report published in full today.

They supported the Structure Plan, drawn up by the county council with input from the district councils, which details the future growth and development of the county.

But the celebrations of those who want to save the Green Belt from development could be shortlived - in 2008/09 the Structure Plan will be superseded by the South East Area plan, drawn up by the unelected South East England Regional Assembly, which could plot a new course for the county.

The initial decision is a blow to Oxford City Council, which wants to build there, saying there is no more room within the city for housing. It needs to find space for 6,500 new homes by 2016.

Earlier this year, the city council and Oxfordshire County Council clashed at a public examination of the county's draft Structure Plan -- the document laying down how many homes will be built in Oxfordshire for the next decade.

Elizabeth Gillespie, who leads Baldons Parish Council's fight against Green Belt development, said: "This is good news, a move in the right direction and we have been completely vindicated.

"It was a devious plot right from the start -- political expediency and financial greed were driving the whole thing."

The South East Plan will map out development until 2026.

Oxford City Council's chief planner, Michael Crofton-Briggs, said: "An urban extension to Oxford is the only way forward. We felt we put up a reasonable argument and there was a big debate over whether the structure plan should be taking on board and considering a more radical approach.

"But as far as an urban extension is concerned, we can't start planning because we haven't been given the green light."

Opponents to Green Belt development point to a vacant 10-acre site at Littlemore Hospital and 700,000 sq ft of space at Oxford Science Park as alternatives.

Anne Purse, the county council's executive member for sustainable development, added: "It's good to get such a strong measure of support for the county council's planning policies from an independent panel."

Debbie Dance, director of Oxford Preservation Trust, added: "We are absolutely delighted a proposal that came forward without proper consideration has been thrown out."

Consultation on the South East Plan begins in the New Year.

Oxfordshire Chamber of Commerce president, Keith Slater, said: "If there isn't development into the Green Belt, it will create problems because there will be a continuation of people coming into the city and problems with economic growth."

The panel also recommended encouraging a greater variety of jobs in Oxford.