CHALGROVE Airfield's sale will be part of efforts by the Ministry of Defence to raise £225m for the public purse.
The controversial site has been suggested as the location for 3,500 homes by South Oxfordshire District Council, despite concerns about its remote location.
The former Second World War base is not currently used by the MoD, but ejector seat company Martin Baker holds the long leasehold and operates there.
Defence Minister Mark Lancaster said it was among 13 sites where it was hoped more than 17,000 homes would be built, 12,565 within this parliament.
In a written statement to the House of Commons, he added: "The release of land by the MoD has the potential to provide land for new homes and we will continue to engage with impacted local authorities to determine how the department's assessment of housing unit allocation against each site may be considered as part of the authority's local plan."
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