The newly appointed Home Secretary is reportedly set to announce the use of Ministry of Defence sites to house people after a wave of protests outside migrant accommodation over the summer.
The scale of the challenge facing the former justice secretary in her new role was illustrated on Saturday.
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An estimated 1000 people arrived in the UK by small boat over the course of the day and French authorities said 24 people were rescued while trying to cross the English Channel.
Dozens of asylum hotels are expected to close after they became the focal point of several demonstrations in recent months.
Ministers are also close to agreeing a returns deal with Germany, having already secured one with France, the Daily Telegraph reported.
One Government source said “nothing is off the table” for Mahmood as she assumes her new brief, which puts her in charge of borders and asylum policy.
She has previously signalled a willingness to look at human rights reform within domestic law.
It comes after the Prime Minister carried out a major reshuffle including wide-ranging changes at the Home Office as he seeks to tighten his grip on immigration and draw a line under Angela Rayner’s resignation.
Former borders minister Dame Angela Eagle and former policing minister Dame Diana Johnson were moved to other departments in the clear-out, while former home secretary Yvette Cooper has become Foreign Secretary.
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Former industry minister Sarah Jones will become policing minister, a brief she held in opposition, as part of Mahmood’s new team along with Mike Tapp, the Dover MP from Labour’s 2024 intake, and Alex Norris.
Chief Secretary to the Prime Minister Darren Jones earlier denied that the Government was in crisis and insisted Starmer now has the “strongest team” in place around the Cabinet table following Rayner’s departure.
He ruled out the prospect of an early election amid opposition claims that the upheaval could open up splits within Labour and collapse the Prime Minister’s authority.