When the heavy metal door at Oxford Prison banged shut four years ago, nobody could have imagined the story that was to unfold could have been taken straight from one of the many dramas that are filmed there, writes Mark Templeton.

First it was going to be a development of shops, cafes and restaurants. Then it wasn't.

Then it was going to be a leisure club. Again, it was not meant to be.

The usual plans for student accommodation and for a museum were talked about.

Then the final scheme for a 16m hotel complex seemed to be the way forward.

But now there's a question mark hanging over funds for the ambitious project - a query which is worth 3m.

London developers, the Osborne Group, says the is the gap preventing the scheme becoming commercially viable.

It is currently applying for a grant to get round the multi-million pound headache. But could this mean the building, steeped in history and used as a backdrop for dozens of films and TV shows each year, will remain as it has been since the last prisoner walked out - empty?

Although this is a commercial venture by a private company, the 3m is needed to preserve or alter important historic buildings at the site such as 'D' wing and St George's Tower.

No company is going to put that sort of cash into restoration schemes, even if it means the end result will inevitably be in its favour.

Oh yes, the other snag? A detailed application for the money has to be made in 15 days to meet the South East England Development Agency's deadline for European funding.

County Councillor Brian Hook says: "It would be unfair to knock a company for not wanting to spend this sort of money on this particular part of the project - I can't think of any commercial venture that would.

"I think we're all agreed now that the hotel is a wonderful idea that could work, but we're at a highly critical point and we're in danger of the whole project collapsing. And that would be a shame and a great loss for Oxford."

The prison was the oldest and most overcrowded in Britain until its later years when it was used for 106 low-security prisoners.

'A' wing, opened in 1840 as part of a major Victorian prison programme, stands side by side with what is left of Oxford Castle, built during the Norman times.

For 50 years, Oxford folk campaigned to close down the city centre jail.

If the hotel does get off the ground, it could be open by 2004.

It will include a public square, restaurants, leisure spa and shops. The iron bars will be making way for wine bars.