WORK on a £330m expansion of Oxford’s Westgate Shopping Centre could start within two years.

On Wednesday, Oxford City Council’s executive approved the terms of an agreement with the Crown Estate, which owns the centre, and developer Land Securities.

Councillors heard the deal was likely to be finalised soon, having reached a “critical moment”.

The council’s executive director for housing and regeneration, David Edwards, told the meeting: “These are uncertain times in terms of the economy. But we are in a position where we now believe we have a commercial and an acceptable agreement.”

The councillors agreed to set a minimum level of ground rent and approved the amount of income the authority would receive from the project.

It also heard that if all goes to plan, work on the centre could begin in 2014, with an opening date of April 2017.

Council leader Bob Price said: “There’s still a long way to go but we are securing our financial position.”

But Green Party leader David Williams warned: “This is a critical moment. We have had six years now of virtual blight in that area, because of indecision. It’s time for decisions to be taken.”