Confidential negotiations are taking place that could see thousands of pounds given to the borough following the Olympics.

A planned “temporary hotel” which would accommodate more than 4,200 Olympic staff in the historic Hainault Forest Country Park, Romford Road, Hainault, could see Redbridge receive a large grant.

A meeting was held at the weekend to discuss the controversial plans and to give residents an opportunity to find out more and have their say.

A source at the meeting said: “The majority of the 30 to 40 people who attended were in favour. However, a few people expressed their concerns and were told to formally object in writing.”

Redbridge Council would not disclose how much it would make on the scheme, but a spokesman said: “Discussions and negotiations are ongoing between the council/Vision and Snoozebox and at this stage are confidential.

“Any agreement will be dependent on the outcome of the planning application.”

The temporary structure, which would cover two fields and two car parks, would be made up of 250 containers providing rooms with double beds, flat screen televisions and en-suite bathrooms.

Hainault Cllr Edward Griffin said: “I have no objection to the snooze boxes because they are only there for a short period of time.

“I would expect the council to make at least half a million pounds on the venture and Cllr Sue Nolan is hopeful that all of the income will be spent on improving the facilities in Hainault Forest.”

Cllr Joyce Ryan added: “I think we all need to remember this is just a temporary measure and people have got to be housed somewhere and the park is already regularly used for festivals.

“The borough will get paid for having it here and the money should be put back into the area and improving the park.”

Hainault Forest site manager Geoff Sinclair, who is also in favour of the proposal, said: “As the accommodation is not directly within our boundaries of Hainault Forest, the presence of a large number of people may in fact benefit us as we could see an increase in visitors to the wood.”