Ministers have already stated that they do not want to use hotels to house asylum seekers.
Previous suggestions to use holiday camps and student halls are less likely to be implemented.
It comes as Conservative MPs prepare to rebel against Rishi Sunak’s illegal immigration bill next week.
A number of senior Conservatives and former ministers have signed an amendment that would exclude the European Court of Human Rights from the UK’s process for dealing with illegal migration.
Boris Johnson’s former Political Secretary Danny Kruger proposed the change, which is supported by a number of MPs including Sir Iain Duncan Smith, Sir John Redwood, and Simon Clarke.
The Commons will debate the prime minister’s legislation on Monday and Tuesday, with newspapers reporting that he will meet with potential rebels in the coming days.
According to government sources, an announcement on hotel accommodations is expected within the next few weeks.