A group of refugees could be turfed out on the streets today after a council stops paying their hotel bill.

West Sussex County Council has spent about £500,000 paying for more than 50 exiled islanders from the Indian Ocean island of Diego Garcia to stay at a hotel in Crawley.

The authority had been ordered by a High Court judge to pay for their accommodation for six months, at a cost of £1,000 per person per week. The period runs out today.

Having been here for half a year, the refugees, all British citizens, are classed as "habitually resident".

They will have to fund themselves and find their their own place to live while they apply for permanent residency in Britain.

The group were forced to move to Mauritius in the late Sixties and early Seventies when American authorities, aided by Britain, took over their island to build a military base.

However, high unemployment prompted them to travel to Britain to fight for a return to their island home.

When they arrived in July, they camped out at Gatwick .

One islander yesterday issued a stark warning that some of them could end up homeless.

Gabriel Valentin, 46, said: "Everyone is feeling very stressed because we don't know what is going to happen.

"Some people could end up on the street because they have nowhere to live.

"Many don't speak good English, which means they have not been able to get a job and don't have any money."

In a bid to remain in Crawley, many of the refugees have submitted homelessness applications to Crawley Borough Council.

The council, which says it is already struggling to find accommodation for homeless people in the area, has rejected them.

Spokesman Mark Robinson said: "We have looked in great detail at their applications but have come to the conclusion that all 39 are not eligible for accommodation.

"They have 21 days to appeal that decision and can apply to see if they qualify for our help during that appeal period."

For the past two weeks staff had worked intensively with the islanders to advise about benefits and finding accommodation, he said.

The county council has always said it should not have to house the group, saying it has no responsibility for them.

Last week The Argus reported how the the council's leader had written to Tony Blair demanding £500,000 to cover the cost of sheltering the exiled islanders.

In his letter, Councillor Harold Hall insisted the Government took over responsibility for them.