City planners will explore ways of building up to 1,000 homes in Oxford's West End.

Last night, the city was confirmed as one of 29 growth points' - areas where the Government wants the population and jobs to boom.

The Town Hall received a £1.16m windfall, the lion's share of which will go towards infrastructure - such as roads and sewers - for between 600 and 1,000 new homes.

Didcot was also named as a growth point and South Oxfordshire District Council received £1.1m for the same purpose.

The planned West End redevelopment is in its infancy but aims to give the west side of the city centre a facelift, with proposals to deal with eyesores like the Oxpens ice rink and Worcester Street car park.

There has even been talk of moving Oxford train station as part of plans to: * develop houses and flats to suit smaller households * create 50 per cent affordable' housing on sites of 10 houses or more * include 20 per cent on-site renewable energy in all developments.

Earlier this year, Oxford City Council made a case to the Government that land south of Grenoble Road in Greater Leys and an area to the north of the city between Kidlington, Yarnton and Begbroke could take 14,000 new homes.

That bid was replaced by the successful one to build within the city, but Grenoble Road was what concerned people last nightOct 24.

Andy Boddington, of the Oxfordshire branch of the Campaign to Protect Rural England, said: "We are concerned about this project because it will promote Oxford to the detriment of the surrounding towns.

"Politicians and planners need to recognise Oxford has reached its environmental capacity and cannot keep expanding at the expense of its character and countryside."

The issue of housebuilding in Oxfordshire is set to come to a head in the New Year at a public inquiry into housing numbers.

The city and county councils will lock horns on where they should go, with the Town Hall wanting a huge sprawl on the edge of the city while County Hall suggests building in the market towns.

City council leader John Goddard, who welcomed the Government funding, said: "This will help us regenerate the West End and create more affordable and sustainable homes for those young people who choose to live and work here."

Swindon and Reading were also named as a growth points.

Oxford East MP Andrew Smith said: "This is a welcome boost for the regeneration of the West End area and the provision of much-needed new homes.

"It is still crucial to press ahead with desperately-needed housing beyond the present city boundaries, for example at Grenoble Road.

"It is clear Government recognises the Oxford area is a priority for housing.

"I would hope some programme could be used to fund Grenoble Road as and when it gets planning approval because the city is rapidly running out of sites for housing."

Housing minister Yvette Cooper said: "This gives Oxford the chance to provide more jobs and homes with higher design and environmental standards."

Meanwhile, city councillors will debate the £300m Westgate Centre redevelopment on Monday, a scheme that fits into the West End strategy and makes provision for about 100 homes.

Where will they go?

Mystery still surrounds the exact number of homes that need to be built in Oxfordshire in the coming years and, crucially, their location.

Earlier this year, when the city council submitted its bid to build on the Green Belt south of Grenoble Road, it was said the county could be forced to find room for an extra 18,210 homes between 2011 and 2026 - over and above those already planned for.

The city council maintains it has a viable site on land south of Grenoble Road, with chief executive Caroline Bull saying the Green Belt had become a "constraint, holding back the city's potential".

However, opponents have estimated that if the highest figures were adopted, half of all new houses would have to be built on green fields, gobbling up Oxfordshire's countryside.

To date, Oxfordshire County Council has dismissed building on the Green Belt and on alternative sites, like Shipton Quarry.

However, its influence on regional planning policy is on the wane, with the power to determine these issues invested in the secretary of state - whoever that might be.