Oxford stands a "strong" chance of being on the Government's shortlist for unitary councils when they are announced next week.

It was originally anticipated eight unitary councils would be confirmed, but that may increase.

And the Oxford Mail understands the city council - which wants to take control of all local government services in the city and spark a shake-up across the county - could make an extended list. A source said last night: "The rumour we heard was that Oxford wasn't going to be on the shortlist.

"However, I have heard this week they were on the 'maybe' list.

"Their bid is unique, because it's not just reorganisation of the city - it's the whole county."

Oxford East MP Andrew Smith added: "While there is all sorts of speculation around, no-one knows which unitaries will go ahead until the decision is taken.

"Oxford has an overwhelmingly strong case, which I am backing all the way.

"This issue won't go away.

"As well as being more democratic and efficient, there's a powerful argument that if Reading, Swindon and Milton Keynes can run their own affairs, Oxford should be able to as well."