Opponents of plans to build a hospital and houses on Oxford United's former ground have given up their fight.

At the first meeting of Oxford City Council's north east area committee last night, councillors voted not to challenge a planning inquiry's decision to allow the development to go ahead.

The Acland Hospital, part of the independent Nuffield Hospital Group, plans to build a state-of-the-art hospital at the Manor Ground in Headington.

The scheme also includes plans by property developer Bellway Homes for 90 flats.

Oxford City Council objected to it on the grounds that it would increase traffic congestion in Headington.

Paul Semple, from the council's community services department, described the appeal decision as "exceptionally regrettable".

However, he told the meeting at Wood Farm First School in Titup Hall Drive, Headington, that the council's legal department advised there were no grounds to overturn it through the High Court.

Mr Semple said the Manor Ground's owner, Firoz Kassam, had been looking at various options, including housing. He said a London-based firm of architects had produced the layout of a full housing scheme before the inquiry's decision was known.

Cllr Alex Hollingsworth, representing the Headington ward, said it would be more sensible to use council money to seek a positive alternative to the hospital plans, rather than fight them through the courts.

He said: "As an alternative to the hospital, I would like to see a housing scheme, including social housing and key- worker housing for people in useful public sector jobs."

A member of the public asked the city council to organise a public meeting, to tell people about the outcome of the planning inquiry.