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Hundreds of asylum seekers could be housed in military barracks as the government seeks to end the use of hotels.
Discussions are underway over the use of two sites - one in Scotland, the other in the south of England - for accommodation for 900 men, as first reported in the Times.
Prime Minister Sir Keir Starmer has instructed Home Office and Ministry of Defence officials to accelerate work to locate appropriate military sites, the BBC understands.
The government has pledged to end the use of asylum hotels, which have cost billions of pounds and become a focal point for anti-migrant protests, by the next election.
Migrants could be housed in the Cameron Barracks in Inverness and Crowborough army training camp in East Sussex by the end of next month, under plans being drawn up by ministers.
Industrial sites, temporary accommodation and otherwise disused accommodation are also being considered.
Government sources told the BBC that all sites would comply with health and safety standards.
A Home Office spokesperson said: "We are furious at the level of illegal migrants and asylum hotels.
"This government will close every asylum hotel. Work is well underway, with more suitable sites being brought forward to ease pressure on communities and cut asylum costs."
Around 32,000 asylum seekers are currently being accommodated in hotels, a drop from a peak of more than 56,000 in 2023 but 2,500 more than last year.
A report on Monday found billions of taxpayers' money had been "squandered" on asylum accommodation.
The Home Affairs Committee said "flawed contracts" and "incompetent delivery" had resulted in the Home Office relying on hotels as "go-to solutions" rather than temporary stop-gaps, with expected costs tripling to more than £15bn.
Commenting on the report's findings, Sir Keir said he was "determined" to close all asylum hotels, adding: "I can't tell you how frustrated and angry I am that we've been left with a mess as big as this by the last government."
Two former military sites - MDP Wethersfield, a former RAF base in Essex, and Napier Barracks, a former military base in Kent - are already being used to house asylum seekers after being opened under the previous Tory government.
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