About 350 offenders would visit the site every week
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The Probation Service wants to merge four of its branches into one big "super centre" in the centre of Oxford, BBC Oxford has learnt.
The service said it was facing financial cuts and bringing the sites in Oxford, Cowley, Abingdon and Banbury together would save money.
About 350 people on probation would use the proposed new site on Mill Street every week.
Plans are unpopular with many residents who said they are "horrified".
Graham McCartney from the Probation Service said: "We've got to move out of our main office in Oxford centre because our lease runs out.
"At the same time as looking for a new office we're having to cope with financial cuts and we think we can make savings by moving staff from smaller offices into one big office."
The service said it would not be using the city centre site exclusively as offenders would still be visited at home and other sites further afield in the county would still continue.
'Absolutely disgraceful'
Those visiting the centre would range from offenders convicted of sex and violent crimes to less serious offences like theft.
But Mr McCartney admitted that "More offenders will be attending one single site than previously".
Mr McCartney urged residents not to be unduly alarmed at the proposals.
"I'm very keen to set up an ongoing communication line with residents so we can respond very quickly to their problems.
Resident Matthew Savage lives yards away from where the new centre will be built.
He said: "It's terrible. I know the schools are also horrified as the footpath that a lot of the people will take from the court to the centre goes past two primary schools and two nurseries.
"I know they want to save money but this is absolutely disgraceful."
Another local resident said: "I'm honestly speechless at the idea. This is an area that has so many young children and senior citizens.
"I just feel this would destablise everything we have tried to build up within the community."
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