Previous suggestions involving the use of holiday camps and student halls were less likely to be brought into action, the report said.
The government has signaled it wants to end the use of hotels as asylum seeker accommodation.
“We have always been upfront about the unprecedented pressure being placed on our asylum system, brought about by a significant increase in dangerous and illegal journeys into the country," a Home Office (interior ministry) spokesperson said, Reuters reported.
“We continue to work across government and with local authorities to identify a range of accommodation options."
Earlier this month, the government set out details of a new law barring the entry of asylum seekers arriving in small boats across the Channel, a proposal some charities say could be impractical and criminalize the efforts of thousands of genuine refugees.
British Prime Minister Rishi Sunak has made stopping boat arrivals a key priority after the number of migrants arriving on the English south coast soared to 45,000 last year, up 500% in the last two years.