The centre, on former MoD land, will hold 750 people

The Home Office said it would not be seeking planning approval for a centre at HMS Daedalus near Gosport, but said it would press ahead with other planned centres.

"We are continuing with our plans for accommodation centres in Bicester, Oxfordshire, and at RAF Newton in Nottinghamshire," said Home Office minister Beverley Hughes.

But opponents of the Bicester centre have welcomed Tuesday's announcement on HMS Daedalus saying it will strengthen their case to have it scrapped.

Judicial review

The proposed Bicester centre has been bitterly opposed by locals.

Cherwell District Council has already won permission to proceed with its judicial review challenging John Prescott's approval for the centre.

The review hearing is expected to take place between 1 March and 7 April.

The site itself, between the villages of Arncott and Piddington, has been earmarked to house up to 400 single men, 50 single women and 300 family members while their asylum applications are being processed.

Campaigners against the centre argued the centre would stretch local services.