Human trials have suggested it is safe and induces an immune response to the disease.
What is the vaccine?
The vaccine, called AZD1222, uses a weakened version of a common cold virus (adenovirus) which causes infections in chimpanzees.
The virus has been manipulated so that it can't harm humans, but also contains part of the coronavirus so that it would trigger the body's immune response to COVID-19's spike proteins which it uses to enter human cells and multiply.
It is hoped the vaccine will make the body recognise and develop an immune response to the spike protein, recognisable in images of the virus, that will help stop COVID-19 from entering human cells and therefore prevent infection.
What do the preliminary results suggest?
The results of the clinical trials, published in the medical journal The Lancet on Monday, indicate that the vaccine has triggered two responses in the immune system.
The first is that it stimulates the immune system to produce antibodies - proteins produced by the blood in response to antigens, which are harmful substances that come from outside the body, such as from viruses or bacteria.
The second is that the vaccine causes the body to produce T-cells, which come into play if non-specific immune cells which respond to any invader instantly cannot tackle the virus.
These cells attack COVID-19 directly.
Sarah Gilbert, professor of Vaccinology at Oxford university, explained that T-cells recognise and kill cells that have been taken over by a virus and been turned into little "virus factories".
It is not yet known whether the Oxford vaccine provides long-term immunity.
Does this mean people can start getting vaccinated against COVID-19?
Based on their results, researchers say further clinical studies should be done with this vaccine.
The current results focus on the immune response measured in the laboratory, and further testing is needed to confirm whether the vaccine effectively protects against infection.
How are the trials progressing?
More than 4,000 participants are already enrolled in the UK, with enrolment of a further 10,000 people planned as researchers test the AZD1222 vaccine.
Trials are also taking place in South Africa and Brazil and it is hoped an effective vaccine could be ready later this year.
This trial aims to assess how well people across a broad range of ages could be protected from COVID-19.
Do enough people in the UK have coronavirus in order for trials to show efficacy?
Professor Gilbert, who is leading the Oxford research, has said low transmission rates in the UK mean there is "little chance" of trials in the country proving the effectiveness of a coronavirus vaccine.
A sufficient number of volunteers have to be exposed to the virus to see whether a vaccine protects them or not.
However, if their chances of being in contact with an infected person are low, it will take a long time to demonstrate the efficacy of a vaccine.
What can be done to combat this?
Researchers have started trialling the vaccine in countries where there is a higher infection rate.
But some are calling for challenge trials, which involve deliberately exposing people to the virus after giving them the vaccine.
A number of prominent scientists, including Nobel laureates, are calling for volunteers to be exposed to coronavirus after receiving a vaccine to see if it offers protection.
Adrian Hill, director of the Jenner Institute at Oxford where the vaccine was developed, said challenger trials could be set up in the UK before the end of the year.
Speaking at a webinar set up by the Science Media Centre on Monday, he said: "Essentially (for challenger trials) you need to tackle three problems - can you find a suitable inoculum, a strain that you can administer safely to volunteers?
"Secondly, where would you do this? It has to be a quarantine facility, where are there suitable places to do that?
"Thirdly, ideally, having on standby a suitable treatment if the infection took off or was more intense than you anticipated."
If a successful vaccine is developed, can it be manufactured to scale?
Production of the vaccine has already been scaled up ahead of the trial to prepare as early as possible for potential future deployment.
The government has signed deals for 90 million doses of promising coronavirus vaccines, with more in the pipeline.
The latest deal is for vaccines being developed by an alliance between the pharmaceutical giants BioNtech and Pfizer as well as the firm Valneva.
This is in addition to 100 million doses of the vaccine being developed by Oxford University with AstraZeneca.