A new street market in Oxford which was cancelled because of confusion over insurance cover now looks set to go ahead next month.

The Cowley Community Market was due to be officially launched on April 26, in Manzil Gardens, after a trial event proved successful last year.

But it was called off at the last minute.

Organisers claimed they were not told in time by Oxford City Council, which owns the 20 stalls being used for the market, that changes to its public liability insurance policy meant the event was not covered.

The council argued its insurance had never covered public events.

The authority had changed its policy so the stalls were no longer covered for theft, because the excess payable was £5,000 per stall.

The two sides have now reached a compromise and the market is to be launched alongside the Cowley Road Carnival on Sunday, June 15.

A second launch attempt was provisionally planned for this Saturday, but has been dropped, as more time was needed to secure final arrangements for insurance cover.

The market committee chairman, Elise Benjamin, said: "We've resolved the insurance issue. We haven't bought private insurance, but have changed how we're going to run the market so we are covered under the council's insurance policy.

"For example, we're not going to serve hot food. "We've also discovered we can extend the policy by paying a small fee -- like extending your car insurance to cover another driver for the day -- so we are going to do that."

Val Johnson, neighbourhood renewal manager, said: "I'm pleased that this misunderstanding has been sorted out."