Bicester's oldest primary school could close because of changes to its catchment area caused by hundreds of planned new homes.
Oxfordshire County Council has confirmed closing St Edburg's is one of the options which could be looked at during a county-wide primary education review, launched last week.
Plans for the town's south west development, which will see 1,585 houses built between Bicester and Chesterton, include sites for two primary schools, although pupil numbers are falling at many primary schools in Bicester.
Michael Waine, the county council's cabinet member for schools' improvement, said one of the new schools could be named St Edburg's and dedicated as a Church of England school, possibly with the same staff and governors.
Mr Waine said: "I think it would be good for the school and good for the town. It would offer them basically a state-of-the-art school.
"The other possibility, if the school did not close, would be to build a new school which would stand not too distant from St Edburg's and possibly put pressure on it."
He said St Edburg's was being looked at for closure because of its confined site and dated buildings.
And Mr Waine added it was also possible only one of the promised two primary schools would be built on the new development, with existing schools taking the extra pupils.
St Edburg's, which dates back to 1858, is Bicester's only Church of England school. It can take up to 180 pupils, but had 38 surplus places last year.
Headteacher Damian Booth said: "It's a decision out of my hands. I will go along with what my parents think. If the proposal is brand new buildings in a brand new place, there are lots of advantages.
"I think the diocese would oppose proposed closure without any replacement or other provision for a church-aided school.
"If there was an opportunity to improve the facilities and access for St Edburg's School I think that's an opportunity that really needs to be considered.
"Schools just aren't necessarily about the buildings, it's about what goes on inside the buildings. The ethos can work anywhere."
Gordon Joyner, the Oxford Diocese's deputy director of education, said: "The diocese is always interested in exploring opportunities that will improve the facilities of our schools, including a move of premises where appropriate. St Edburg's is our only school within Bicester and we expect it to continue for many years to come."
Isobel Drake and Kath Ellen, who have grandchildren at St Edburg's, said they would be prepared to fight to save the school.
Mrs Drake said: "It would be a shame. It's a lovely school."
A group of staff, governors and county councillors will look at possibilities for St Edburg's over the next few months, before putting proposals to a central county council board.
There would also be a formal consultation before a decision is made.
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