Ministers will seek to appeal against the High Court’s refusal to allow the Government to intervene in the case of a hotel used to house asylum seekers in Epping, Essex.
Security minister Dan Jarvis revealed on Friday the Home Office would appeal against the decision.
If successful, it would pave the way for a wider appeal against a temporary injunction blocking the Home Office from using the Bell Hotel as asylum accommodation.
The move comes after the High Court granted Epping Forest District Council the temporary injunction on Tuesday that blocked asylum seekers from being housed in the hotel from September 12.
The council had sought legal action after the asylum accommodation site had been at the centre of protests in recent weeks.
The demonstrations were held after an asylum seeker was charged with trying to kiss a 14-year-old girl, which he denies.

If successful, it would pave the way for a wider appeal against a temporary injunction blocking the Home Office from using the Bell Hotel as asylum accommodation

The local council had sought legal action after the asylum accommodation site had been at the centre of protests in recent weeks

The demonstrations were held after an asylum seeker was charged with trying to kiss a 14-year-old girl, which he denies
Before judgment was handed down on Tuesday, barristers for the Home Office asked to intervene in the case.
They cited the ‘substantial impact’ caused to Home Secretary Yvette Cooper in performing her legal duties to asylum seekers.
They argued moving asylum seekers in the short period would cause ‘particular acute difficulties’ for the Government, but their bid was dismissed.
Since the injunction was granted, other local authorities across the country controlled by Labour, the Conservatives and Reform UK are investigating whether they could also pursue legal challenges against asylum hotels.
A wave of protests outside hotels used to temporarily house asylum seekers is expected in the coming days.
Announcing the Government’s plan to challenge the High Court’s decision, Mr Jarvis told broadcasters on Friday: ‘This Government will close all asylum hotels and we will clear up the mess that we inherited from the previous government.
‘We’ve made a commitment that we will close all of the asylum hotels by the end of this Parliament, but we need to do that in a managed and ordered way.
‘And that’s why we’ll appeal this decision.’
Hotels in Cannock, Chichester and Tamworth are among those expected to be targeted with demonstrations by anti-immigration campaigners.
Anti-racism groups already organising counter-protests in 15 locations across the three-day Bank Holiday weekend.
They are prepared to turn up on Friday night in the likes of Bournemouth, Portsmouth, Leicester, Leeds, Orpington, Perth, Aberdeen and Altrincham.
The Epping injunction threatens to collapse Labour’s asylum system as councils across the country prepare to hit the Home Office with copycat litigation over the use of hotels in their areas.
Tory leader Kemi Badenoch has written to all Conservative councils pledging support for any legal action.
Reform UK leader Nigel Farage has used the Epping case as a rallying cry.
He said: ‘Let’s hold peaceful protests outside hotels and put pressure on councils to go to court to try to get illegal immigrants out.’
But anti-racism groups have warned the ruling sets a ‘dangerous precedent’, with Stand Up To Racism saying that it will ’embolden the far-Right to call more protests outside hotels housing refugees’.