A garden is to be created in Oxford in memory of Princess Margaret, who died two years ago.

The memorial, which is believed already to have been approved by the Queen -- the Princess's sister -- will be on a secluded patch of land between the Rothermere American Institute and Mansfield College, off South Parks Road.

It is planned to be completed next year to mark the third anniversary of the princess's death.

The project has already been agreed, although talks are still continuing between Oxford University and Mansfield College about details surrounding the lease of the land.

The new garden will be the creation of hotel and clothes designer, Anouska Hempel, who first gained fame as an actress in the 1960s and 1970s.

Costing an estimated £500,000, the project is being organised by Henry Wrong, the former director of the Barbican arts centre in London.

Mr Wrong is also working as a consultant to the £5.5m Rothermere American Institute.

A spokesman for the institute said: "We're not involved in the mechanics of this and have had no dealings with the Palace.

"The plot of land has been negotiated between the university and the governing body of Mansfield College.

"It has been decided upon, but the lease has yet to be transferred.

"It's definitely happening, although at this stage we have no idea if Oxford City Council will raise any objections."

Last year, the institute, which was opened in May 2001 by the former US President and Oxford University Rhodes scholar Bill Clinton, won an award from the Royal Institute of British Architects for being environmentally efficient and harmonious within its setting close to Oxford's traditional centres of learning.

Described as a centre of excellence dedicated to the study of the United States, bringing together scholars, intellectuals, policy-makers and public figures from around the world, the institute hosts the finest library of Americana to be found outside the US.

Designs for the garden have yet to be revealed, but once completed it will be the main memorial to the princess in the UK.

Spokesmen for both the university and Buckingham Palace were unavailable for comment.