OXFORD’S first power station could be redeveloped and restored to its former glory as an extension of the Said Business School.

The Old Power Station opposite Osney Island, is currently used for storing artefacts from Oxford University museums.

The school, which currently has facilities in Frideswide Square and Egrove Park, Kennington, said it could use the building for flexible teaching spaces.

The power station could also provide short-term accommodation for students.

Business school director of operations Mat Davies, said: “We intend to provide 140-160 bedrooms exclusively for students who are attending short programmes within the building – this will not be permanent accommodation.”

The university said the building had been underused in recent years and the business school had been given first refusal on restoring it.

Oxford University’s director of estates Paul Goffin said: “It’s an important building in the history of Oxford, people care about it and its legacy and they want it to be used well in the future.

“We are in the concept stage but if the business school can find a way to use it fully, it will happen.

“The application will be to restore and conserve the historical aspects of the building.”

Mr Goffin could not guarantee parts of the old power plant would not be knocked down but promised plans would “respect its heritage”.

He also said the building’s current inhabitants would be moved to a research unit where all the artefacts could be catalogued more effectively.

Chief operating officer at the school, Catherine Quinn, said its growth and the university’s desire to make better use of the building led to the proposals.

She said: “The school has been growing and because of this success we need more space for ‘executive education’ as we call it.

“We take on professional leaders in the world of business and have a mix of educational experience from undergraduates to MBA and doctorate degrees. The university was looking for a long-term use of the building – it made sense.”

The university held a public meeting with Osney Island residents to outline its proposals at the end of April.

It is hoped an architect will be appointed in the summer with a view to a planning application being submitted in summer 2016.

With 18 months to two years construction planned, the building could be ready in 2018.

Oxford City Council leader Bob Price said: “The Said Business School scheme for the old power station site is very exciting because it is an iconic part of Oxford’s industrial history.

“To see it used in this way would be great.

“It is good for the business school because it is close to the existing building and they could cope with their increasing number of management programmes and have people living close to the main building.”

Two public consultations will be held this autumn and in spring 2016, with construction expected to start the following year and completed in late 2018.