Stafford MP Theo Clarke has written to the borough council asking it to launch a Judicial Review into the decision to house asylum seekers at Beaconside.
Mrs Clarke has opposed the plan by Serco for nearly 500 places at the former student accommodation.
She was disappointed the Planning Inspectorate upheld the company’s appeal last month. She has previously said Stafford does not have the services to cope with such a number.
The MP has now written to the council’s chief executive Tim Clegg asking the authority to take action.
In her letter she said: “Having spoken to local residents to hear the strength of their opinion on this issue, I believe the best move for the Stafford community is to launch a Judicial Review against this decision. I realise this decision would have to be taken by the borough council.
“I believe such a move would have a chance of success. But in any case, it would delay the use of this facility and allow extra to continue to make the case to government that such a facility is completely inappropriate and would leave open the chance the government could change its plans.
“I hope the council will decide to mount a challenge and would urge you to do so.”
The MP has raised Beaconside with the Prime Minister in parliament, the Home Secretary and the Leader of the House of Commons.
She added today: “Although I will be seeking an urgent meeting with the Home Office to ensure Stafford receives all the support it needs if Beaconside is used as asylum seeker accommodation, I do not believe we have exhausted all the avenues to stop it.
“I think a Judicial Review is a sensible measure and I believe it is what most people in Stafford would like to see happen. Such an action by the council will have my full support.”