Boaters thrown out of the Castle Mill yard in Jericho have asked British Waterways if they can be allowed back on the site.

The campaigners have set up a limited company, Jericho Community Boatyard, and want to restart boat repairs until the public body manages to secure a sale of the site, which has a £4m price tag.

Adrian Arbib, one of nine directors of the new company, said: "There are 41 boats on a stretch of water to St Edward's School which are effectively affordable housing, and the owners need a boatyard where they can carry out work themselves.

"The Castle Mill yard is lying dormant and rather than pay £7,000 a month for a man in a security cabin, we are offering to go back in."

Asked if the move went ahead, whether the boating community would launch a series of protests similar to those witnessed when they were forcibly evicted in May, Mr Arbib denied there would be any further trouble.

He added: "We are a liable public company so British Waterways could sue us if they wanted to."

British Waterways, which spent £185,000 evicting squatters and securing the site, said it was negotiating with a prospective purchaser and could not allow the boaters back while talks were progressing.

Jeff Whyatt, general manager of South East Waterways, said: "The land is currently subject to contract with the prospective purchasers and it is anticipated this sale will be completed in the near future.

"The conditions of the subject to contract offer preclude the sub-letting of the land during this period."

A report from the Planning Inspectorate on proposed housing development on the site said alternative boatyard facilities should be provided, but the boaters have so far rejected a site in Yarnton.

Mr Arbib said any replacement had to be within a short distance of Oxford city centre.

He added: "We need good facilities with access to the city for people such as single mothers living on boats and needing to work and take their kids to school nearby."