Bosses at discount clothing chain Primark have ended confusion over the fate of Oxford's former Allders store by confirming they will open a shop on the site.

The new store will occupy the prime location in the city's Westgate Centre, despite an apparent clause in the lease which states that it can only be used as a department store.

Primark spokesman Geoff Lancaster said: "We are telling everyone we are coming. There was some dispute, but that has been resolved and everybody is happy again."

Mr Lancaster said the new store would open "sometime in the autumn" and employ several hundred people.

Employees could be former Allders staff, although they will have to wait six months with no pay. About 60 per cent of the 140 workers have already opted for redundancy.

Allders went into administration in January after majority owner Minerva failed to find a buyer. Sales over the crucial Christmas trading period also fell two per cent.

Eventually Primark stepped in, but the problem with the lease cast doubt over the move until now.

All the parties are confident there will be no further obstacles.

Margaret Harwood, spokesman for Capital Shopping Centres, the owners of the Westgate Centre, said the deal was now going through legal formalities.

She added: "The problem with the lease was a red herring -- I don't know where that came from. As far as we're concerned, Primark is definitely coming."

When the planned takeover was first announced, Primark offered staff redundancy or six months unpaid leave during refurbishment of the site.