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

Judges backed government approval for the accommodation centre which will house 750 asylum seekers near Bicester in Oxfordshire.

Councillors and activists in Cherwell had hoped the court would dismiss the plans rubber stamped by Deputy Prime Minister John Prescott.

Opponents say the proposal had not gone through correct planning procedures.

I recognise that there has been concern amongst some local people but I do not accept that an accommodation centre will be a detriment to the community Home Office Minister Des Browne

The protesters are unhappy that the former Ministry of Defence (MoD) land between Arncott and Piddington in Oxfordshire has been earmarked for a centre to house 400 single men, 50 single women and 300 family members.

The asylum seekers would stay at the centre while they wait to find out if their applications have been successful.

The High Court had ruled the deputy prime minister had done nothing wrong in law when he gave permission for the centre.

A Cherwell District Council spokesman said the authority would now "carefully consider" whether to take their battle to the House of Lords.

'Absolutely gutted'

Barry Wood, leader of the council, said: "We felt we had to stand behind the local people and fight against an injustice.

"The planning inspector said, 'No', but the government just bulldozed it through."

Dionne Arrowsmith, of the Bicester Action Group, said: "This decision is completely and utterly disappointing for many thousands of local people.

"We have fought a very long campaign, and are absolutely gutted."

Home Office Minister Des Browne said: "I welcome this decision to confirm approval for an accommodation centre for asylum seekers near Bicester.

'Asylum system overhaul'

"We have been committed throughout to a fair and open debate on our proposals, which is why we have gone through a full planning inquiry.

"I recognise that there has been concern amongst some local people but I do not accept that an accommodation centre will be a detriment to the community.

"The trial of accommodation centres is an essential part of our reforms, which are overhauling the asylum system and will help ensure that asylum applications can be processed quickly and efficiently.

"The centre will also bring jobs and business contracts into the area."