Migrants who drop their asylum claims could be paid £3,000 in tax cash to start businesses in their homelands.
Ministers are said to be mulling over a series of Home Office proposals to move migrants out of hotels - and, in some cases, the country.
The first, the £3,000 option, would see the sums dished out to migrants from countries with low asylum acceptance rates.
Asylum seekers from Albania, Bangladesh, Brazil, China, India, Nigeria and Pakistan would be those in the spotlight.
Ministers are said to be mulling over a series of Home Office proposals to move migrants out of hotels
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They would be eligible for £3,000 handouts through a Government voluntary returns scheme to help them "find somewhere to live, find a job or start a business" back home.
The other cash option reportedly being considered is a £100-per-week allowance for migrants to leave the hotels.
That fee would be paid on top of their existing £49.18 weekly handout.
Officials are said to be proposing they would then use that money to pay to live with a family or a person they know.
MORE ON THE MIGRANT CRISIS:
The migrants would be eligible for £3,000 handouts if they go home
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The migrants would then have to provide proof of appropriate accommodation and would have to undertake the same level of "regular reporting" to the Home Office.
"It's important that officials provide advice to ministers that sets out a range of options but it doesn't mean ministers will pursue every option. Nothing is off the table," one source told The Telegraph.
The Home Office maintains that it is "furious" about the situation.
But Chris Philp, the Shadow Home Secretary, labelled the cash payment scheme a "disgrace".
"The idea of handing out taxpayers' hard-earned money to people who illegally entered the country is morally repugnant," he said.
"We should leave the European Convention on Human Rights, which will enable all illegal immigrants to be deported within a week of arrival."
Chris Philp, the Shadow Home Secretary, labelled the cash payment scheme a 'disgrace'
| PADuring his two-year stint as a Home Office Minister, Mr Philp did not publicly advocate for leaving the ECHR - and deferred to its use in Commons debates on policing and migration.
Generally, only since the Tories were ousted last summer has he campaigned against the Convention.
A Home Office spokesman added: “The Government is furious about the number of illegal migrants in this country and in hotels. That is why we will close every single asylum hotel.
"We make no apology for saving taxpayers millions of pounds by removing individuals who have no legal right to remain in the United Kingdom, or who are seeking to leave voluntarily."