Work to transform Oxford United's former home, the Manor Ground, into a state-of-the-art private hospital is progressing well.

Although not a lot can be seen from above the ground, construction workers have been digging out an underground car park on the site in Headington, which will be named the Nuffield Hospital Oxford.

Heavy rain over the last few days, which has wreaked havoc across Oxfordshire, has not affected work on the hospital, due to open in October 2004.

During the next three months, the first stages of the hospital building will become visible to passers-by, and in March developer Bellway Homes will start building 87 flats at the rear of the site.

The new hospital will be part of the Nuffield Hospitals group, which also owns the Acland Hospital in Banbury Road.

Mel Maclean, business development manager for the Acland, said: "The underground car park has to be dug before people will be able to see anything coming out of the ground."

She said the new building would not replace the Acland.

Mrs Maclean said: "The new hospital will be a major acute hospital with an intensive care unit. We will be able to perform emergency surgery, heart surgery, neuro-surgery and more major general surgery.

"It will have 80 beds, six operating theatres and 20 consulting rooms.

"We won't be taking casualty patients from the John Radcliffe Hospital, but will take patients with medical insurance, or those who are willing to pay."

Mrs Maclean added Nuffield was hoping to liaise with Bellway Homes to turn some of the flats into accommodation for hospital staff.

Bellway sales director Chris Edginton said: "We've not come to an agreement yet about hospital staff living in the flats, but I wouldn't be surprised if Nuffield workers were keen to buy them as they are so close."

The Manor Ground football stadium, the former home of Oxford United football club was sold last January to Nuffield for £12m.