The grisly find of bones, including adults and children, confirms that the site was once the home of the St Bartholomew's Hospital, set up in 1215.

Recent excavations have identified seven men, five women and nine children, without any discernible disease, in a closely packed cemetery less than an inch beneath the Pound Lane junction with Newtown Road.

However, the bodies have been set out facing east or west, in Christian custom, and only one was found to have had leprosy.

Duncan Coe, Archaeological Officer for Heritage and Tourism in West Berkshire, said: "All the burials probably relate to the medieval hospital of St Bartholomew's which was founded before 1215 AD. Little archaeological evidence of the hospital has ever been recorded, but there have been piecemeal records of burials in the area around Pound Street."

He added: "The assistance of the Highways department at West Berkshire Council has allowed the excavations to continue without impacting upon the programme of streetworks. Their support has helped us to get this exciting project off the ground."

Angela Boyle, Head of Human Remains at Oxford Archaeology said: "The majority of the remains were located just 20 cm below the base of the existing road. They are densely packed and intercutting so defining individual grave cuts has proven difficult.

"The burials were all oriented east-west, which is typical of the medieval period. No evidence of coffins has been found so it is likely that these people were merely wrapped in shrouds prior to burial".

The hospital was set up by the ailing King John in 1215, and dedicated to helping the poor and the ill. The yearly fair took place on St Bartholomew's Day (Aug 24) in a field over the road, which is today called Fair Close.

Excavations also found a silver jetton - a gambling token - in one of the graves. All the finds removed will go to Oxford University for further reports.