Plans to relocate Oxford railway station are still on the table, despite cuts in Government funding to the railways.

Richard Bowker, chairman of the Strategic Rail Authority, which oversees the railways, has warned that money earmarked for the rail system over the next 10 years is running low and that expansion projects would have to be put on hold.

The Government's decision this week to cut £312m from Britain's rail budget over the next three years added to councillors' concerns that the proposal to move Oxford station to land at Oxpens would be dropped.

But Network Rail, which replaced Railtrack, and the SRA insist this is not the case.

SRA spokesman Jonty Alone said one of the priorities was improving services between Southampton and the north. Limited capacity at Oxford station was causing a bottleneck and the relocation to Oxpens would help to solve that.

Mr Alone said: "There is no specific threat to the project to relocate Oxford station.

"We will be considering a variety of ways of funding a proposal to relocate. A proportion of the site could be disposed of and we could also consider what to do with the existing station site."

The plan to relocate Oxford station will not be given the go-ahead until capacity and utilisation studies are completed in the spring.

Maureen Christian, the city council's executive member for culture, said cuts to rail funding had caused concern and was pleased the station relocation scheme had not been ruled out.

She added: "I will still be pressing the SRA for more detailed information and a timetable for this project, because so many of the city's plans depend on this.

"Moving Oxford station to Oxpens ties in very closely with plans to expand the Westgate Centre.

"We desperately need to expand rail capacity in this part of the country, and that would also help our bid to become Capital of Culture in 2008."

David Robertson, the county council's executive member for transport, said he was hoping for a meeting with Mr Bowker on February 7 to try to find out more about plans for the relocation.

Hopes for a guided bus system running from Oxford station to Redbridge and Peartree park and rides are closely linked to the relocation.