A gigantic barge that can house more than 500 people will be announced as new accommodation for asylum seekers within days.
Home Secretary Suella Braverman has signed a deal for the Bibby Stockholm to be used for those arriving on small boats across the Channel.
She will announce this week she has chartered the vessel, which be moored at Portland in Dorset.
The Sunday Mirror revealed at the weekend that the Home Office was in negotiations with its owners, Liverpool-based Bibby Marine.
The barge is 91 metres long and can house 506 people.
Bibby Marine said it has been refurbished since a watchdog called it an "oppressive environment" when the Dutch government used it to house asylum seekers in 2005.
It was also used by energy firm Petrofac for workers building the Shetland Gas Plant.
According to sources, chartering such a vessel costs £8,000 to £15,000 a day.
The move comes after Immigration Minister Robert Jenrick said the Tories were "exploring the possibility" of using ships instead of hotels, which is thought to be costing taxpayers £6million a day.
Mr Jenrick last week announced the use of two former RAF sites - Wethersfield in Essex and Scampton in Lincolnshire - to house those who make the perilous journey across the Channel on small boats, as well as an ex-prison site in Battle, East Sussex.
The proposal to use ships and barges as accommodation has been branded a "gimmick" by critics.
Home Office documents, which were leaked last week, claimed a previous proposal to put asylum seekers on vessels was rejected last year - due to it being more expensive than using hotel accommodation.
Enver Solomon, chief executive of the Refugee Council, said: "We are deeply concerned by the Government's plans to accommodate people seeking asylum on military bases and apparently barges that are entirely unsuitable to their needs."
He added: "The use of unsuitable contingency accommodation is a direct consequence of the chronic delays and huge backlog in the asylum system. There would be no need for hotels if cases were processed promptly and effectively."
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