The Home Office is looking at what Denmark is doing to cut illegal migration, Sky News understands.
Last month, Home Secretary Shabana Mahmood dispatched officials to the Nordic nation to study its border control and asylum policies, which are considered some of the toughest in Europe.
In particular, officials are understood to be looking at Denmark's tighter rules on family reunion and restricting most refugees to a temporary stay in the country.
Ms Mahmood will announce a major shake-up of the UK's immigration system later this month, PA is reporting.
Labour MPs are said to be split on the move.
Some, in so-called Red Wall seats which are seen as vulnerable to challenge from Reform UK, want ministers to go further in the direction Denmark has taken.
But others believe the policies will estrange progressive voters and push the Labour Party too far to the right.
It comes as the government continues to struggle to get immigration under control, with rising numbers of small boat crossings in the Channel over the last few months and a migrant, deported under the UK's returns deal with France, re-entering the country.
Some 648 people crossed the Channel to Britain in nine boats on Friday, according to Home Office figures, bringing the total for the year to 38,223.
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Ms Mahmood wants deterrents in place to stop migrants seeking to enter the country via unauthorised routes.
She also wants to make it easier to remove those who are found to have no right to stay in the UK.
Sources told the PA news agency she was eager to meet her Danish counterpart, Rasmus Stoklund, the country's immigration minister, at the earliest possible convenience.
Speaking on BBC Radio 4, Mr Stoklund likened Danish society to "the hobbits in The Lord Of The Rings" and said people coming to the country who do not contribute positively would not be welcome.
Mr Stoklund said: "We are a small country. We live peacefully and quietly with each other. I guess you could compare us to the hobbits in The Lord Of The Rings."
"We expect people who come here to participate and contribute positively, and if they don't they aren't welcome."
The split in Labour was apparent from public comments by MPs today.
Stoke-on-Trent Central Labour MP Gareth Snell told Radio 4's Today programme that any change bringing "fairness" to an asylum system that his constituents "don't trust" was "worth exploring".
Mike Tapp, a Home Office minister and MP for Dover and Deal, also said: "There is nothing 'Reform-esque' about a firm, fair immigration system that isn't open to abuse.... Those who disagree continue to enable Reform."
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But Nottingham East MP Nadia Whittome, who is a member of the party's Socialist Campaign Group caucus, said: "I think these are policies of the far right. I don't think anyone wants to see a Labour government flirting with them."
Labour backbencher Clive Lewis, the MP for Norwich South, also described the proposals as the "worst of both worlds".
Writing on X, he added: "When a progressive party adopts the logic of its opponents - that migrants are a threat, that order must come before rights, that the state's job is to manage people rather than empower them - it doesn't neutralise the authoritarian right. It normalises it."
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