A PLAN to replace Peers Techonology College in Littlemore with an Academy has passed its first major hurdle.

Oxfordshire County Council has agreed that the scheme should be examined in detail and it is to back an approach to Government, which could see the struggling school become the city's first new style Academy.

An expression of interest to the Department for Education and Skills is a key stage in the process.

It will lead to a feasibility study which, amongst other things, will consider whether the existing school should be demolished or refurbished.

It has emerged that the Anglican Diocese of Oxford is the key mover behind the ambitious plan. It has agreed to act as a sponsor, which is likely to involve initial investment of at least £1.5m Cabinet portfolio holder for schools improvement, Michael Waine, said that it had been agreed, in principle, that Peers should close and be replaced with an Academy.

But this was subject to the feasibility study coming out in favour and the scheme being backed by Peers governing body.

Mr Waine added: "It is very early days. But this proposal has the potential to make a great difference to the lives of young people and the wider community in Littlemore and beyond.

"We look to provide high quality education for all the young people of Oxfordshire. There is no other means of achieving this. Diverse approaches will best meet the differing needs of different communities."

The Diocese is leading the initial approach to the Department for Education and Skills. The starting date for the new academy could be as early as September 2008.

Other organisations to support the initiative include both Oxford Universities, the Open University and Harrow, the famous independent school.

Peers School, a 1,000 pupil specialist college in Sandy Lane West, was placed into special measures last year after it was found to be failing in 24 out of 25 areas.

Academies were first introduced in 2000 as all ability schools, established by sponsors usually from business, faith or voluntary groups in partnership with local councils.

They offer students more vocational subjects and are seen by the Government as offering a fresh start for failing schools, giving pupils a better start in the workplace.

The Bishop of Reading, the Rt Rev Stephen Cottrell, who chairs the Diocesan Board of Education, said: "The Church of England has a proven track record in education over almost two centuries and we welcome the opportunity to build on the long-standing partnership with Oxfordshire County Council to explore this pioneering venture for the 21st century.

Nicola Sheldon, chair of Peers Governing Body, said: "As governors we would want to see improvements in the terms of the buildings and securing first class resources for the school and the local community, otherwise there would be no point in doing it."

Parents in Banbury earlier gave their support to plans to turn the town's Drayton School into Oxfordshire's first Academy, which could open next year.