Moves have begun to salvage redevelopment plans and a year-long festival from Oxford's failed bid to become European Capital of Culture.

As Liverpool celebrated landing the title, the Oxford Inspires consortium said it remained hopeful that the bulk of the costly schemes listed in the city's bid document would still go ahead, if on a smaller scale.

With Oxford missing out on millions of pounds from tourism, business and European investment, the city now faces a struggle to attract funding from the private sector and regional agencies.

But Robert Hutchison, chief executive of Oxford Inspires, said: "Winning the title would have undoubtedly accelerated the regeneration of Oxford's 'West End'. But I cannot see this or any other capital developments in our revised bid document being jeopardised. I cannot see why the whole thing cannot still go ahead."

The document includes an impressive array of schemes including plans to transform Worcester Street car park into a canal basin, to redevelop Oxford Town Hall and the Ashmolean Museum, and create new museums dedicated to science and famous children's authors.

But he admitted that Oxford's proposed festival in 2008 would have to be on a smaller scale.

The main backers of the Oxford bid -- including the two universities, Oxford City Council, Oxfordshire County Council and Arts Council England (South East) -- will meet on Wednesday to set priorities and develop a new business plan.

The Rector of Lincoln College, Paul Langford, chairman of Oxford Inspires, said: "We will be meeting our stakeholders and we'll go ahead with our schedule and our own agenda."