Residents set up the Bicester Action Group to fight the plans

The news is a blow to campaigners against the centre in Bicester, intended to house up to 750 asylum seekers in rural Oxfordshire.

Cherwell council's legal appeal against the centre has yet to be heard.

The government says the building is an essential and necessary part of their reform of the asylum system.

We remain committed to abiding by the legal process but need to be ready to make progress as soon as the appeal is completed Des Browne Immigration minister

Ministers said they had signed a 10-year-contract with GSL UK Ltd, currently a part of Group 4 - who run many of the country's prisons.

The centre is not intended to be a detention centre - the mixed male and female population will be free to come and go but must sleep there.

The centre has been fiercely opposed by local residents and has seen several demonstrations.

Immigration minister Des Browne said: "The trial of accommodation centres is a key part of our ongoing work to reform the asylum system and we are determined to get the centres up and running as quickly as possible.

"We were disappointed by Cherwell district council's decision to appeal the High Court's decision to confirm the Deputy Prime Minister's planning approval for our accommodation centre near Bicester.