After a 17-year wait, council chiefs have released almost £350,000 to build a new community centre in Charlbury.

The centre, which will be built in Enstone Road, will include indoor sports facilities, a library, adult education services and meeting rooms.

Another £100,000 now needs to be raised for the project, but community leaders hope work will start in early 2013.

The Thomas Gifford Charity, which was created about 150 years ago to manage the site, is leading the project.

Trustee Liz Reason, who also sits on Charlbury Town Council, said: “We are delighted and we almost cannot believe we have finally made this step.

“It gives us security and enables us to now move forward.

“This time next year we could be seeing something built.”

The project began in 1995, after Oxfordshire County Council demolished the former Spendlove School and sold the land to housing developers.

The school was used for community activities and, to appease angry residents, the council promised £348,000 from the sale to provide educational facilities for people in the area.

The project almost came to fruition in 2010, but cuts forced the council to pull out from funding a planned library and adult education centre.

But, after the trust proved it could run the facilities itself, County Hall has now released the money.

The centre is expected to cost more than £1m, but the trust has already raised £140,000 and Charlbury Town Council has pledged £67,000.

With trustees planning to sell some of the site to developers, only about £100,000 more needs to be raised.

Ms Reason said the group will meet with an architect who has been involved in the project for about four years later this month and a planning application could be lodged in March or April.

She added: “When you have had so many setbacks over the years you do not get too excited, but we are excited about this.

“It will make a big difference to the town.

“We have a fantastic town as it is, but to provide these facilities is going to really enhance what people can do here.

“Currently, people have to drive a long way to Witney or Carterton to get to indoor sports facilities.”

Neil Owen, county councillor for Charlbury, said: “It is brilliant news for Charlbury and especially for the Thomas Gifford Charity, which has campaigned tirelessly for a new community centre for years.

“Although everyone believed that money would come back to the community as a right, these are nervous times financially and nothing was certain.

“It is with a great sense of relief that the county council has finally acknowledged this money should got to the community.