 Thousands have turned out in protest |
Government chiefs say they are prepared to put their proposals for an asylum centre near Gosport, Hampshire, to a public inquiry.
Council leaders met with Home Office officials on Monday to ask them to rethink the controversial plan.
The government wants to use the former naval base at HMS Daedalus in Lee-on-Solent to house up to 400 single men.
It has now promised to hold public consultation over the plan and a series of public meetings.
The local authority representatives had asked the government to look at housing asylum seekers in a series of individual properties around the area, instead of being concentrated on one site.
But the Home Office is to press ahead with the plan as it stands at the moment.
Council leader Sean Cully said: "The stage they are at at the moment is looking at planning implications and costs and then in a month or two months they will make a recommendation to the minister whether to go ahead."
He added that if final plans were put forward to the council, it would oppose them.
The authority has already awarded a grant of �5,000 to the residents' Daedalus Action Group.
As many as 8,000 people recently marched in protest at the proposals.