Developers have submitted a planning application to build homes on land opposite The Elms.
The plans, which include affordable housing, new public footpaths and cycleways, are said to be in keeping with the Thame neighbourhood plan.
But campaigners claim that the scheme would destroy a much loved part of town.
A spokesman for Barton Wilmore, which is working for Rectory Homes as planning consultants, said: “We have worked closely with Thame Town Council and South Oxfordshire District Council to create a scheme that will be of the highest quality and sensitive to its surroundings.
“It includes a total of 18 affordable homes and will open a brand new park for lo cal people to enjoy on land that has never before been accessible to the public.
“In addition, a further planning application has been submitted for a series of improvements to Elms Park, which will be funded through the development of The Elms.”
Thame Town Council will launch a consulation process to find out what local people think of the controversial scheme.
l Tell your Thame Gazette what you think by emailing email@example.com