OXFORD United have vowed to continue their search for a city centre shop after missing out on a Covered Market spot.

The club had planned to sell shirts, scarves, hats and other official merchandise in a vacant unit in the historic market place but missed out following an Oxford City Council selection process.

United were one of 18 companies to put forward offers and made it onto a shortlist of four but were told last week they had been snubbed.

The U's club director Peter Lee speculated the shop had been beaten by a specialist food company and said he was "disappointed" with the decision.

He said: "It's obviously very disappointing.

"There are thousands of people at every game, a thriving Community Trust working across the county, and we took 34,000 supporters to Wembley last month.

"It's bound to be a specialist food business but whatever it is how can it compare to giving Oxford United a presence in the city?

"I'm not sure how big the demand is for cupcakes, for example, right now but there's nothing we can do about the decision."

Oxford City Council said it could not reveal the winning bid yet but confirmed the unit's use would be in the A1 category – which includes cold food sellers.

Fans had backed the plans, telling the club that having a shop in the city centre would be easier for them to purchase merchandise.

Chairman Darryl Eales told the Oxford Mail the club were "exploring every possibility" to have a presence in Oxford city centre.

Earlier this season the club urged fans to avoid bootleggers selling unofficial club scarves, hats and flags at the Kassam Stadium and elsewhere across the city.

On-pitch successes and cup runs in the JPT and Fa Cup this year have raised the profile of the U's and sellers were looking to cash in.

The club moved to trademark its merchandise in January and their request has been lodged with the Government’s intellectual property office.

Oxford City Council spokesman Tom Jennings said the shortlisted business were asked to provide a detailed business plan.

He added: "Although we cannot name the new tenant at this stage, we are very excited about what they will bring to the Covered Market."