Bicester's new 30-bed community hospital, costing between £6m and £7m, has been given planning approval and could be open by 2005.

It will be built on about 4.5 acres of farmland, on the corner of Oxford Road and Middleton Stoney Road, for the North East Oxfordshire Primary Care Trust (PCT).

It replaces the 12-bed community hospital just a few yards away on the opposite side of Oxford Road.

Ian Inshaw, chairman of the PCT, said: "We are delighted with the news, which means we can now get on with the development of this essential amenity."

The hospital will also have a minor injuries unit, outpatient clinics for X-ray, physiotherapy and occupational therapy, a 60-place nursery for the children of staff, offices for the PCT, and an ambulance station to replace the station in Kingsclere Road. It is possible that the ambulance station will include a new headquarters for the Oxfordshire service in Headington, Oxford.