A multi-million pound plan to redevelop Oxford's Gloucester Green has been described as "half-hearted' and "unambitious" by a leading city councillor.

On Monday proposals for a new multi-screen cinema complex were due to be debated by the Town Hall's decision-making executive committee.

However, the paper has been withdrawn for more consultation. As it stands, the plans involve removing the large brick cinema wall in George Street, which blocks off the square.

The designs have been submitted by AXA Sun Life, which owns Threeways House - a mixed-use property on the east side of the square. The Odeon cinema site is owned by the city council.

But with the cinema lease due to expire in 2009, the Odeon, AXA and city council are trying to move the scheme forward after two years of discussions.

Although the extra consultation has been welcomed by Alan Armitage, last night he said: "I am absolutely hopping mad about this - my perception for that part of town is for a hugely improved arts quarter.

"This paper shows a terrible poverty of imagination, it's worse than half-hearted - it's a complete missed opportunity.

"The paper fails completely to reflect the ambitions of the council's cultural officers and of the multifarious arts organisations in the area, such as the Playhouse Theatre, Old Fire Station, the the Burton Taylor Theatre and New Theatre.

"It has been written entirely to serve the commercial interests of the market traders, local retailers and the cinema."

Two years ago the city council decided to enter single-tender negotiations with AXA, which caused deep divisions as some felt the council would not get best value without a proper competitive tender process.

Mr Armitage added: "Not a single resident of the flats which surround the Green has been consulted - let alone any of the council's partners in the arts world or the universities. "Exciting plans to re-launch the Old Fire Station as a performing venue on the Green have been under development for some time, but this paper would create a turning circle for large vehicles right outside their front door."

The plan would create modern retail frontages in George Street, Gloucester Green and St George's Place. The new cinema is expected to have seven screens.

Martin Lyons, the city council's property co-ordinator, said: "We want to enhance the use of Gloucester Green as a major public square in Oxford with a scheme that would create a better environment for shoppers, shopkeepers, Gloucester Green residents and the market stallholders."