Long-awaited permission for the Oxford Bus Company to move its depot from Cowley Road to Watlington Road looks set to be granted this week.

After months of wrangling over the future of the Cowley Road site and concern over whether the roads around the Watlington Road site could cope with the extra volume of traffic, agreements have largely been made by Oxford City Council, the bus company and developers Berkeley Homes.

Councillors on the city council's planning committee are now being asked to agree the demolition of the Cowley Road depot, and its replacement with business units and 227 houses and flats, which will expand onto the adjoining Cowley Marsh playing fields.

At Friday's meeting, they will also be asked to give the go-ahead of the demolition of existing buildings at the Dyers site in Watlington Road and for the construction of workshops and offices for use by the Bus Company.

Both applications are subject to a legal agreement being signed with Berkeley Homes regarding how much they will contribute to local amenities including future extra school places provision and better recreational facilities.

A report to the committee by Karen Tate said: "While officers regret the loss of the bus depot from Cowley Road, its historical connections to east Oxford and the development on part of the playing field, the re-development of the site will provide an opportunity to create a number of benefits."

She said these included the provision of low-cost business start-ups, social housing and 1.52 acres of the Cowley Marsh fields being retained as a nature reserve.

Developers have also agreed to provide £15,000 towards future junction improvements at the Watlington Road roundabout.