The Octabus Dial-a-Ride service will be funded until March 2012, with an option for a two-year extension, by Oxfordshire County Council, West Oxfordshire District Council, Oxford City Council and the Vale of White Horse District Council.

The service was launched in April 2005 and is now used by almost 800 people who either cannot use, or who find it difficult to use, conventional public transport.

Cllr Ian Hudspeth, Oxfordshire County Council's cabinet member for transport, said: "We are delighted to be supporting this valuable and vital transport service, in partnership with our colleagues in Oxford City, Vale of White Horse, and West Oxfordshire councils.

"Many elderly and disabled people do not have their own transport, and are unable to get out and about without the help of this door-to-door service. Octabus is a vital part of the mix of public transport services available in Oxfordshire."