Oxford University hopes to buy up more land in Headington in the next few weeks.
The 28-acre Park Hospital site, which is owned by Oxford Health NHS Foundation Trust, is next to the university’s Old Road campus which it was recently given permission to redevelop, despite local concern.
University spokesman Matt Pickles said he hoped the Park Hospital sale would go through in the “next few weeks”.
The university is keeping its plans for the former psychiatric hospital site under wraps, but Mr Pickles said public exhibitions would take place in May.
He expected planning applications would then be submitted in July.
“The university is consulting widely as to what people want from the site,” he added.
Residents had been concerned the site would be used as a second phase of the Old Road campus redevelopment which was criticised for being “overbearing” and lacking in parking facilities.
The university has said it is looking into ways of developing the site which would appropriately link it with the Old Road campus, while keeping its wooded character.
As part of the £57m construction programme at Old Road, the university agreed to contribute more than £250,000 towards the controlled parking zone in East Oxford, which was given the go-ahead this week.
Old Road resident Hilary Rollin hoped the university had learnt from its last attempt to get planning permission in the area.
He said: “The development is going to have a tremendous impact on the local area. It would be nice to give them a clean slate.
“The congestion is worrying, as is the loss of light and natural habitat, but it would be nice to think the people who work there will use the local businesses.”
The Park Hospital building was built in 1886. It was used as a children’s psychiatric hospital from 1958 before becoming a general children’s hospital in the 1980s.
It is now known as Boundary Brook House and houses child and adolescent mental health services.
Oxford Health NHS Trust spokesman Clara Blackings said: “We are not in a position to confirm any information about the Park Hospital site as no agreements have been finalised. We can confirm there are no current plans for the services provided by the trust to move from this site.”
It is understood the university would lease Boundary Brook House back to the trust.
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