Developers have revealed they still hope to build a university in Swindon.

Builders Persimmon Special Projects and Redrow, which are behind the proposed Swindon Gateway project at Coate Water, invited the town's companies to hear the latest news at a briefing this week.

The gathering, at the Marriott Hotel, was told that although the University of Bath's ruling body had recommended pulling out of the scheme, there was still hope it might change its mind, or another university could step in.

Paul Briggs, chief executive of the Thames Valley Chamber of Commerce, said: "It is a setback, but that's really all it is. We'll still be going ahead.

"There are two possible ways forward from here. We have other interested universities or Bath may come back on board.

"It would be great if Bath comes around, but if not we have the option of other universities for the campus.

"All the town's business people have been really supportive."

Builders Persimmon Special Projects and Redrow Homes will only be allowed to develop green land at Coate if a university campus is included in the plans.

With the University of Bath looking set to axe its plans due to the size of the site and Government plans to change higher education funding, another university will need to fill the gap.

Lyn Hill-Tout, chief executive of Swindon and Marlborough NHS Trust, which runs Great Western Hospital, was at yesterday's meeting. She said: "The hospital is very keen to see a university in Swindon so we can exploit it as a teaching facility.

"Swindon really needs a good university and the Coate site would be especially beneficial for us because of its proximity to the hospital."

Spokesman for Persimmon and Redrow Charles St George said: "We are hoping to attract another university into the town on that site.

"Several new universities have expressed their interest but we are not naming names at this stage."