Up to 5,000 homes could be built near East Grinstead if developers help pay for a new bypass or relief road.

Although most of the 952 new homes planned for the area by 2006 are earmarked for Burgess Hill and Haywards Heath, Mid Sussex district councillors are suggesting a much larger expansion west of East Grinstead between 2006 and 2011.

They say developers could pay for new schools, a relief road and transport improvements to help regenerate the town.

Councillor Peter Martin, who chairs the district's development and transport committee, said: "Mid Sussex District Council has no alternative but to take its fair share of the housing and we will ensure that high quality, attractive development is achieved.

"We have already allocated sites in our local plan for housing demanded of us up to 2006, but in the next phase, up to 2011, we are asking the county council to identify East Grinstead for growth.

"Development to the west side of East Grinstead, accompanied by a new relief road, could secure significant benefits for both existing and new residents in terms of infrastructure and community gain."

Councillors believe accepting new homes west of East Grinstead will ease the pressure to develop other areas of the district.

Coun Martin stressed: "There is absolutely no intention to accept development proposals for the area west of Burgess Hill based around the A23, nor for the A23 corridor generally.

"This part of the district has taken a great deal of new housing in recent years. It is this council's firm policy to resist any further development between Burgess Hill and the A23, and in the A23 corridor.

"Any such development would be heavily dependent on the trunk road, which would be unsustainable in transport terms and would not benefit existing residents either side of the A23."

A consultation document by West Sussex County Council, The Choices Ahead, proposes more than 6,000 extra homes in Mid Sussex district by 2011.

Mid Sussex District Council accepts the county council must allocate housing and recognises it is important to keep a balance between jobs and homes.

But some district councillors believe the number of houses suggested for the area is far too high.