Rapidly expanding bookies Stan James is set to continue its growth by taking over part of Oxford-based River Racing's business.

The Wantage-based firm is looking to snap up its rival's shop based in Park End Street for an undisclosed sum as it continued to cement its position as Oxfordshire's fastest growing company.

River Racing aims to continue with its telephone-based business after agreeing to the move and the shop will be re-branded as Stan James once the deal is formally sealed on October 3 following approval by the licensing authority. The three staff will be retained.

Steve Fisher, managing director of Stan James, said: "We decided this was a shop we wanted to buy and made an offer which was accepted.

"River Racing's telephone business will continue upstairs until another site can be found."

Earlier this year Stan James took over Headington-based David Smith bookmakers and Wallingford's Lewis Cowan and now has 20 shops, across Oxfordshire, Berkshire and Wiltshire.

It also has call centres in Grove and Gibraltar and employs about 250 people in total.

In May, Stan James was named among the Fastrack 100 - the index of Britain's fastest growing 100 private companies.

Mr Fisher said that the expansion was due to a change in legislation in 2001 which saw the nine per cent betting tax abolished with bookmakers instead being taxed on their gross profits. In 2004 alone, turnover jumped 91 per cent to £250m.

Steve Jones of River Racing said: "We received an offer we could not refuse.

"But I want to make it clear that any rumours about our closing down are completely untrue.

"We will continue our telephone business as usual from the office above the shop. It is only the shop downstairs which we have sold."

River Racing was formed by Steve Jones and John Turner in 1993 when they opened a betting shop in Jericho. They then moved the business to Park End Street in 2000.

Mr Jones added: "We have received several overtures from major national companies but we are delighted to come to a deal with a local firm."