Thames Water says it is on the point of agreeing a financial settlement that will net them hundreds of thousands of pounds from Oxford City Council and Oxford United.

Executives from the water company met council and club representatives last week to discuss terms of settlement following Thames' victory in a High Court case last month.

The judge ruled that Thames had the benefit of a covenant over land at Minchery Farm, where United's half-built stadium stands, preventing it being used for any purpose other than recreation.

He also decided that a stadium did not constitute recreational use.

A spokesman for Thames Water said: "We are on the point of settling with the council and club but nothing has been signed yet."

The full amount that will be paid has not yet been disclosed - although it is known that the council will have to pay £200,000.

Tony Stockford, an Oxford city councillor for a Blackbird Leys ward bordering the stadium site, said: "It's good news that we are near an agreement but I should expect any settlement to be approved by the full council before being signed."

Oxford City Council's director of property and leisure John Arnold said: "According to the proposed settlement, United would pay Thames Water in the first instance. However the council is liable for £200,000 and this sum will be deducted from rent that the club will pay when the stadium is completed."

Managing director of Oxford United, Keith Cox, was on holiday and unavailable to comment. Meanwhile contractors Taylor Woodrow are expected to visit the Minchery Farm stadium site this week to clear up debris and assess how much money would be needed to re-start construction work there.

Taylor Woodrow walked off the site of the £15m stadium 20 months ago over a "payment issue".

The club is now ten months overdue to pay the city council a £900,000 instalment for a 125-year lease on the council-owned land upon which the new stadium stands. Another £1m will be due in rent when the stadium is completed.

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