Abingdon is in the running to be the new headquarters of the National Lottery, after Virgin tycoon Sir Richard Branson, above, appeared to get the thumbs-up ahead of his rivals.

Although Sir Richard's bid to run the lottery under the title the People's Lottery has not been given the franchise, the Lottery Commission said yesterday it would give him a month to submit a new, improved bid.

Current operator Camelot has been told it has not been successful in its bid.

It has not been ruled out of further negotiations but The People's Lottery appears to be the front runner. Sir Richard's company has been looking at three undisclosed sites in the Abingdon area for its headquarters.

If the bid is successful, hundreds of jobs could be created.

The firm said in a statement: "The People's Lottery respects the decision by the National Lottery Commission and welcomes the opportunity to co-operate with them under sole bidder status.

"We are now keen to work with the commission in clarifying and resolving the outstanding issues and this process will start immediately." Camelot employs about 600 people at its headquarters in Watford in Hertfordshire.

Paul Bizzell, leader of the Vale of White Horse District Council, welcomed the news but said: "It's a pity Sir Richard hasn't got it yet because this would be a prestige project for putting Abingdon on the map."