A new garden city will be built in Oxfordshire under Coalition plans to deal with a housing shortage.
The new town, which would have up to 13,000 homes, would be built near Bicester and would include a £44m capital investment from the Government for roads including a new junction on the M40.
The plans will be outlined in the National Infrastructure Plan set to be published on Wednesday ahead of the Autumn Statement, alongside a range of other housing measures.
A Government loan would be provided for the development of amenities including green transport.
Ebbsfleet in Kent was announced earlier this year as the location for the first modern garden city.
Bicester has also expressed an interest and could receive a new railway station as part of the proposals announced by Deputy Prime Minister Nick Clegg.
Mr Clegg told the Daily Telegraph: "The Liberal Democrats have long argued that garden cities are an idea whose time has come again.
"I am delighted that Bicester can now be confirmed as a pioneer in what I hope will be another wave of garden cities in this country.
"Bicester will get help from the Government with both significant capital investment and in helping developers build the amenities that are required to be a true garden town."
Under the proposals, a series of new communities with green spaces, sustainable transport and spacious housing will be built.
Mr Clegg has previously promised at least 10 would be created if the Liberal Democrats are part of the next Government.
:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.
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