South Oxfordshire District Council has reacted with "disappointment" at the news a 4,000-home estate could be built on the edge of Oxford.

Communities Secretary Hazel Blears yesterday gave the go-ahead for consultation on development on land south of Grenoble Road, near the Kassam Stadium.

Although the scheme was put forward by planners working for Oxford City Council, the site actually falls within the south Oxfordshire administrative boundary.

Now, planners from each authority are to met to decide a way forward.

Homes could be inhabited as early as 2013. South Oxfordshire district councillor Angie Paterson, cabinet member for planning, said: "This is very disappointing - but not wholly unexpected - news.

"Once the panel charged with looking at the South East Plan had recommended an urban extension to Oxford, I feared it was unlikely the Secretary of State would reject it.

"I remain opposed to the proposal as does the council as a whole.

"We will convene a meeting in the near future with others who oppose this development to discuss how best to respond."

Backers of the Grenoble Road development think the scheme could be a partial solution to Oxford's chronic housing shortages and a better option than building in market towns like Didcot and Bicester, which adjoin the A34.