Free on-street parking in Oxford is likely to stay after "doom and gloom" opponents were told they had been wrong about the scheme.

Oxfordshire County Council is about to embark on a comprehensive review of the controversial pilot project, but the Oxford Mail can reveal the authority is almost certain to make it a permanent fixture.

And that could crank up the tension between the county and the city council, which largely opposes the idea.

Motorists have been able to park free in hundreds of on-street spaces after 6.30pm on weekdays and all day Sunday since December last year.

The move, which is estimated to cost the county council as much as £500,000 a year, was an election promise from the Conservatives, who run the county council.

But it has angered city councillors because it comes at a time when County Hall is considering charging 9,000 residents in 16 city zones an annual levy of £40 a permit for the privilege of parking outside their own homes.

By doing this, the county council would be guaranteed an income of £360,000.

County councillor David Robertson, cabinet member for transport, said: "They (opponents of free on-street parking) were screaming about whether it would bring the city to a standstill, but I have only had complimentary remarks about it making Oxford a welcoming city.

"I drive into Oxford in the evenings and I haven't seen major disruption.

"The fact is if the information proves it has been a success I believe the county council would want to continue."

County Hall said residents' parking zones in Oxford ran at a loss of £123,000 last year, but the city council has denied this.

In 2004/05, the latest figures available, Oxfordshire County Council paid Control Plus £1.3m to run and enforce on-street parking in Oxford, made £1.6m from on-street parking meters and £1.1m from fines.

Graham Smith, Oxford City Council's transport and parking manager, told the Mail the free on-street parking pilot had not had a noticeable effect on city council-run car parks, which generate £4.5m a year.

Liberal Democrat city councillor Stephen Tall, who has described Oxford's transport policy as "bastardised", said: "I could understand it if Oxford was a ghost town in the evenings, but it is not.

"The county council is going to lose a lot of money it could be invested in subsidised bus services, rural bus services and park- and-ride.

"It seems very inconsistent they are proposing to charge city residents for parking outside their own homes while allowing those from outside to park for free."