Bicester is a step closer to securing a new community hospital after a change of heart by health bosses, according to campaigners.

In a joint statement released this week, Oxfordshire Primary Care Trust and Cherwell District Council announced they had agreed to look at the possibility of building a new hospital in the town. Campaigners said it marked a change of direction by the PCT, which has previously dismissed the idea of a new hospital as unnecessary and too expensive.

The announcement comes just a week after Cherwell said it would be happy to fund the building of a hospital to rent back to the PCT.

Oxfordshire PCT's chief executive Andrea Young said: "The PCT is very keen to work in partnership with Cherwell District Council to try and find a solution for Bicester Community Hospital.

"We also want to enter into further dialogue with local residents to clarify in more detail the services which they feel are vital to meet their needs."