Town councillors have dismissed claims that the decision to build Bicester's new hospital would re-open the debate on the location of future housing.
After the plan was called in by the Government, permission has been given for the 30-bed hospital to be built on land between Bicester and Chesterton.
This farmland had been considered in the debate over where 1,400 homes were to be built, called the south-west option.
After months of switching their preferred sites, Cherwell district councillors finally decided the housing should go on RAF Bicester airfield instead.
But town councillor Les Sibley argued homes should now be built on the farmland near Chesterton after all.
He said: "The decision on the hospital bodes well for the housing to go on the south-west option where there will be affordable housing for nurses and other key workers.
"If the houses were built there as well as the hospital we would get much-needed new roads on the western side of town."
However, Lawrie Stratford said: "The hospital was a stand-alone project and has nothing to do with the housing issue."
Council leader Norman Bolster added: "It was good news over the hospital decision, but the housing location is in the draft local plan."
The planned location of future housing in Bicester is expected to be discussed at a public inquiry into the local plan, which is due to be held next summer.
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