A Government letter has given the strongest hint yet an asylum seekers' centre will be built near Bicester, according to a Cherwell district councillor.

The letter to Cherwell District Council from immigration minister Beverley Hughes said: "We continue to believe that self-contained, out-of-town facilities, where all services are provided on-site, will be an effective model for accommodation centres, and will not have a significant impact on local services."

Douglas Spencer, a Bicester West Conservative councillor, said the letter showed the Home Office was planning to push ahead with the centre.

He said: "They have requested the county council to bid for contracts -- it isn't the sort of thing you do if you're not sure what is going to happen."

Mr Spencer described Ms Hughes' letter as "sublime arrogance".

But Dionne Arrowsmith, co-founder of Bicester Action Group (BAG), which was set up to fight the proposals to build the centre, said the statement was at least a year old and had been contradicted by Ms Hughes' own office at two public inquiries.

Mrs Arrowsmith said: "I don't think it proves it's more or less likely to go ahead.

"That statement is ancient. I think she needs to revise it because her own Home Office officials have contradicted it throughout two planning inquiries."

A planning inspector's report for the Bicester site has been given to the office of the Deputy Prime Minister.

It will be made public after Mr Prescott has made a decision. In her letter, Ms Hughes also said she was disappointed the council objected to the proposals, but said she would abide by John Prescott's decision.