Talks are now under way between Oxford United and Oxford University over a partnership to buy the U's football stadium.

When Nick Merry took over as chairman from Firoz Kassam last year, Mr Kassam retained ownership of the £13m stadium and rented it back to the club.

Yesterday Mr Merry's business partner, Ian Lenagan, revealed the details of his plan which he hopes will enable the club to afford to buy the stadium within three years.

Mr Lenagan, who owns 50 per cent of Woodstock Partners Ltd, which owns Oxford United, told the Oxford Mail talks were starting with Oxford University, regarding the partnership deal.

The pair cannot afford to buy the stadium itself and so are looking at radical partnership plans to complete the deal.

With the proposal involving the university, lecture theatres, classrooms, and educational facilities for sports management and sports development courses would be constructed beneath the Oxford Mail stand.

The club would then own the stadium outright, with the university taking out a 15 to 25 year lease on the sports development facilities.

Talks are also taking place with an organisation in the Far East to discuss the possibility of constructing a language school for foreign students beneath the Oxford Mail stand. A partnership deal is also being discussed with a third organisation, another educational establishment, but it is understood that it is not Oxford Brookes University.

Mr Lenagan added: "We need to create the position where we have two to three potential partners."

He explained that it was not a viable option to buy the stadium from Mr Kassam for £13m because the annual interest, £910,000, would hit the club's finances.

At last week's fans' forum, Mr Lenagan, for so long the "silent partner" at Oxford United, introduced himself to fans and unveiled a series of ambitious plans to revitalise the club.

One of these proposals, for Oxford United to have a base at Peers School in Littlemore, when it is rebuilt as an academy, is well established, and looks likely to go ahead.

As part of the arrangement, the U's would train every day at a new £25m sports complex in the grounds of the school.

The school will specialise in sport, maths and IT and take its first pupils next year, with new buildings completed in 2010.

While Mr Lenagan has ambitious plans for the club's future, they do not depend upon promotion out of the Conference.

But the Harlequins Rugby League chairman's cautious business approach is balanced by high hopes for the team and he added: "Within the next five to 10 years we want to be in the Championship at least - you have to have ambitions and aspirations."

He estimated that it would cost between £1.5m to £2m to build the necessary facilities beneath the Oxford Mail stand, with the option of building a fourth stand on the open side of the ground as part of longer-term plans.

A spokesman for Oxford University was unable to confirm that talks are taking place but would be unaware of the details if talks are taking place with an individual college.