Villagers have welcomed a brewery chain's decision to drop plans to turn a historic pub into a 130-seater restaurant.

Six Continents Retail's proposal to transform The Perch in Binsey, west Oxford, into one of its Vintage Inns restaurants threatened to destroy centuries of tradition, according to local critics.

Earlier this year, the company -- formerly Bass -- applied to the city council for permission to extend the kitchen, increase seating capacity, and provide 26 new car parking spaces.

But now, it has dropped the scheme after officers opposed changes affecting the building's listed status. The decision come as a relief to Binsey's handful of residents, who already feel under threat by plans to enlarge the community.

Christ Church, Oxford, which owns all but one of the properties in Binsey, wants to convert a barn into a house and build a further three homes.

A year ago, Six Continents Retail gave a Vintage Inn makeover to The Trout in Godstow, north Oxford, and later claimed a £1m investment in The Perch would enhance both the thatched building and the setting.

But Binsey's residents strongly opposed the proposal, claiming it would increase traffic fourfold along narrow Binsey Lane, and ruin an idyllic rural scene.

The Perch is owned by Christ Church and leased to Six Continents Retail, and has been a popular watering hole on the west bank of the River Thames for 800 years, with many literary connections. It is close to an avenue of poplars made famous by Gerard Manley Hopkins in his poem Binsey Poplars, and was frequented by Alice in Wonderland author Lewis Carroll and television detective Inspector Morse.

Six Continents Retail spokesman Janice Clark claimed feedback after The Trout's refurbishment had been positive, but she confirmed the company had withdrawn its plans for The Perch "because of problems".

She said: "The Perch was just one of many pubs that were taken over from the group Allied Domecq two or three years ago which were being looked at in terms of future investment.

"It's really very much back at the discussion stage internally, and we haven't any plans to put forward in the immediate future."

Binsey resident Dr Stephen Cobb welcomed the company's decision to withdraw its plans.

"That's very encouraging," he said. "Meanwhile, we must concentrate such energy, time and efforts we have to the Christ Church plan."