Thousands of homes will be built near Kidlington unless towns such as Bicester and Didcot expand.
By 2016, according to the county council's draft structure plan, there could be 5,500 new homes in Oxford alone.
The document, which will be debated by the environment scrutiny committee on May 16, concluded that the Begbroke-Kidlington-Yarnton area was "the only potentially suit- able place for a new community".
It said: "Any such development would need to provide a high proportion of affordable housing.
"A new community could bring improved services and facilities to the Kidlington area. It could also provide for research and development activities, which need to be located close to Oxford."
The county must comply with Deputy Prime Minister John Prescott's demands for more homes in the South East.
The final version of the plan will shape development over the next 15 years. The draft suggested 3,700 houses in Banbury, 4,200 in Bicester, 4,300 in Didcot, 2,700 in Witney, and 2,100 in Grove.
Principal planning officer Ian Walker said building near Kidlington would be considered if possibilities for development at Bicester, Didcot and Grove had been exhausted.
He said this could comprise "several thousand new homes." He added: "This is by no means a fait accompli.
"The focus still remains very much on Bicester, Didcot and Grove."
Muriel Prestidge, chairman of Gosford and Water Eaton parish council, said: "Kidlington is already very busy.
"Thousands of new homes nearby would place much more pressure on existing services."
The council will begin a six-week public consultation in September, after the executive has studied the plan.
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