The 23 teachers are attached to a unit at Cardiff County Council

The National Union of Teachers claims that their contracts will not be renewed because of budget cuts.

It is thought that the teachers have been told that funding from the Welsh Assembly Government is no longer available.

Angus Dunphy, the head of Fitzalan School in Cardiff, claimed he would lose over two members of staff due to the cuts.

He described the decision as a huge blow.

"This won't just impact on the asylum seeking and refugee children but also on the other children who have difficulties.

'Huge implications'

"It has huge implications," he added.

The 23 teachers are attached to a unit at Cardiff County Council.

There are all on short term contracts which it is thought will be terminated by April 30th.

Cardiff is one of four parts of Wales which receives extra money from the assembly to support the children of asylum seekers.

The others are Swansea, Newport and Wrexham.

In a statement the Welsh Assembly Government said it had contributed a "significant amount of funding to assist Cardiff in providing educational services for asylum seeker pupils."

'Reduced funding'

It added that it was "for Cardiff Council to make decisions about the deployment of staff."

In a statement on Wednesday, Cardiff Council said the reduction was the result of changes to its budget provision from the Welsh Assembly Government.

The statement said: "Cardiff has received asylum seeker pupils since May 2001.

"The support services that we have provided have matched the level of the available grant for additional support provided by the Welsh Assembly Government.

"This has enabled us to provide the equivalent of 17 teaching posts.

"However, the way that this additional support element is calculated by WAG has changed for 2004-5, and this means that the available funding has reduced by almost 50%.

"In line with this, we have had to review our arrangements and reduce the level of teaching support.