Service company Serco Group plc has been awarded contracts by the UK Home Office Visas and Immigration department for two regions of the new Asylum Accommodation and Support Services Contract (AASC), in the North West of England and the Midlands and East of England.
The total contract value is estimated to be around £1.9 billion over a 10-year term for both regions.
The final contract value will reflect "the actual service user volumes and indexation adjustments over the life of the contract".
AASC is the successor framework for the current COMPASS (Commercial and Operational Managers Procuring of Asylum Support Services) contracts, which were awarded in 2012.
Of the current COMPASS regions, Serco is responsible for the North West of England and Scotland and Northern Ireland and is currently looking after some 17,000 asylum-seekers.
Under AASC, Serco will be responsible for the provision of properties for initial and dispersed accommodation requirements, for transportation to and from properties, and for a range of other services to support the welfare of asylum-seekers.
In the two regions for which Serco has been selected, there are currently about 20,000 asylum-seekers living in more than 5,000 properties.
Serco aims to "ensure all accommodation is safe and habitable and in accordance with the Decent Homes Standard".
Rupert Soames, Serco Group chief executive, said: "These will be the largest contracts by value ever awarded to Serco [and it] vindicates our decision to continue to invest in building our capability and expertise in what is an extremely sensitive, complex and nationally important area of public service delivery."