Neighbours have welcomed revamped plans for a Co-op store earmarked for the site of a pub.

The Midcounties Co-operative submitted an application last year for a large building on the site of the former King of Prussia pub, next door to its store in Rose Hill, Oxford.

It wanted to build four shops on the ground floor, with nine flats on the second and third floors.

But in December, Oxford City Council called on the firm to reduce the height of the building and the amount of residential space.

Now fresh plans have been submitted for a two-storey building with four shops on the ground floor and eight flats on the first.

Planning officers have recommended the plans, which include 20 parking spaces at the back and nine at the front, for approval.

John Neville, who lives opposite the site, said: "The reduced height should overcome most people's objections, although we thought the original design looked OK.

"It will enhance the shopping parade and will benefit all the older people nearby who will now have a greater choice."

City councillor Ed Turner said: "I'm really pleased on the planning application that they seem to have listened to the feedback of councillors and residents.

"It's really good when people, rather than dragging their heels, attempt to engage with the council and local community."

But one Rose Hill resident is not in favour of the new plans and believes losing the pub will be a blow to the area.

Alick Elithorn said the new plan failed to address the need for a community meeting point which the pub provided.

He said the council should take the opportunity to revamp the parade for the benefit of local people. Especially following the recent loss of the pharmacy and post office.

Mr Elithorn said: "Turning the Co-op into a mini-Walmart with inadequate parking is no answer to the neighbourhood's needs."

Pub owner Greene King closed the pub in April 2005 and the Co-op bought it four months later. The building stood empty and became a magnet for vandals and drug users, until it was destroyed in a fire last July.

The city council is expected to make a decision on the plan on May 1.