The council plans to put 90 acres of land to the north of the city into the joint venture company. Grosvenor will bring funding and development expertise to support the development.

There is a proposal for a new flyover dubbed the “Barton Bridge” to ease the impact of the new 1,000 homes in Barton.

Councillor Ed Turner, deputy leader of Oxford City Council, said that developing homes in Barton supported the council’s aim to be a “forward-looking council” and said the homes would benefit the wider community.

Edward Skeates, projects director at Grosvenor, said it was confident that it agreed with Oxford on the scope of the project: “Timescale is critical so we will be full steam ahead now to enter into the agreement and get the project underway.”

Grosvenor was selected through a competitive process that attracted 20 bids.

Preferred bidder status is subject to the approval of Oxford City Council’s city executive board in May 2011. Work is due to start onsite in 2013.