Plans for a major retail park in north Oxfordshire that will create new 500 jobs have been revealed.

The Banbury Gateway development is set to include a Marks & Spencer and Next as flagship stores, developer LxB Retail Properties Plc Group said yesterday.

The park is planned at the present site of motorsport firm Prodrive, near junction 11 of the M40 at Wildmere industrial estate.

Prodrive, one of the town’s largest employers, would move to the nearby Hella car lighting factory which is vacant.

The move will allow it to consolidate its 12 buildings and other UK bases into one purpose built HQ, employing 600 people.

At the retail park, Marks & Spencer would provide clothing, homeware, food and a cafe while Next would sell clothing, homeware, DIY and garden products.

Seven further units and three or four food and drink outlets, served by a shuttle bus service to the town centre, would also be developed.

Parking would be free.

LxB chief executive Tim Walton said a deal was set to be signed with Marks & Spencer and Next.

On the other units he added: “They are likely to be large retailers looking to move into Banbury for the first time. It opens up a huge catchment area for them.”

The firm hopes it will attract shoppers who would otherwise travel to places like Oxford, Milton Keynes, Bicester Village and Leamington Spa.

But Mr Walton said the plans would not see Marks & Spencer and Next close their Banbury town centre stores or any other town retailers leave for the site.

He added: “You have multiple ways of engaging the customer, whether it is large sites, smaller sites or the internet.”

Prodrive chairman and chief executive David Richards said: “We have had very positive feedback from all quarters.”

There is strong demand for the motor racing technology services the firm provides, but it was hampered by a lack of space, he said.

About 450 people work on the site.

Banbury and District Chamber of Commerce chairman Claire Kingsbury backed the plan but said: “I think there is a feeling among the town centre retailers of them not being quite so positive, but they appreciate there are no large units in the town centre.”

Plans to redevelop the Gala bingo hall and multi-storey car park at the town centre’s Bolton Road were announced this month.

Mrs Kingsbury said this is aimed at “upmarket” retailers and so would “complement” the retail park plan.

Chris Chandler, who runs Chandler’s cafe in Church Lane, said: “If M&S are going to stay in the town then hopefully it won’t be too bad.”

Marks & Spencer spokesman Brett Lowther said: “We are in discussions about a potential new development at this site to complement our existing high street store in Banbury.”

LxB hopes to submit planning applications for the Prodrive move and retail park in the coming weeks for decision by Cherwell District Council.

If successful, it hopes to begin relocating Prodrive next summer and open the retail park in 2014.