Local councillors granted outline planning for the vast scheme to build a new underground car park, shops, restaurants, a cinema and 122 flats.

Developer Westgate Alliance, a partnership formed by Land Securities and The Crown Estate, said it plans to demolish the southern part of the Westgate Centre and multi-storey car park and existing residential accommodation.

This will make way for 780,000 sq ft of new retail space for around 70 new shops, anchored by a major John Lewis department store.

The scheme will consist of four blocks surrounded by covered streets and public squares.

The Westgate Alliance is now progressing the detailed designs working with four architectural practices, Allies & Morrison, Dixon Jones Architects, Glen Howells Architects and Panter Hudspith. The process is being overseen by Westgate masterplanners BDP.

Planning committee member John Tanner said: “I am very satisfied with the way things are going forward, bearing in mind this is an outline application.

“Oxford has been powering ahead as far as the universities are concerned and as far as the car plant is concerned but we have been hanging behind as far as the shopping centre is concerned.”