It is unclear how many bodies the plot contains.
The grave was discovered during a candlelit vigil held on Sunday to memorialise the children and give relatives a moment to reunite with their loved ones, according to the Local Democracy Reporting Service (LDRS).
One relative approached councillor Maggie Hurley, who organised and funded the event, to inform her of the second plot, where they had traced a family member.
The group broke away to place candles and a wreath on the plot.
The relative was too upset to speak to the LDRS at the time but Ms Hurley said: “We’ve found another one.
“This is social injustice on a scale I never could have imagined.”
Oldham Council did not wish to comment on the second site, though a spokesperson noted that the communal site – known historically as ‘pauper’s graves’ and more recently as ‘local authority burials’ – was known to the council.
Both sites at Royton Council are due to receive a memorial bench and plaque to commemorate the babies, children and a number of adults who are buried there.
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