The prime ministers announcement to scrap the 50 per cent cap on selective school places by faith will allow the expansion of Catholic schools.
Before now schools had to save half of their intake for children from other religious or non-believing backgrounds.
It is expected 35-40 will be built across the country to cater to the demand, a significant proportion coming from Catholic Eastern European nations.
Previously, Catholic bishops had vetoed the opening of new schools because of a 2010 ruling that stated they would have to offer half of its places to non-Catholics.
The Times has also reported that there could be a boost in free Jewish schools now the cap has been removed.
Critics have labelled the plans divisive and suggested it would lead to religious ghettos, but supporters argue the cap prevented Catholic children attending Catholic schools due to the quota requirement.
A Downing Street spokesman speaking when the announcement was made, said: "The admissions cap had the best of intentions but it has failed in its two key tests. It has failed to make minority faith schools more diverse, because parents of other religions and none do not send their children to those schools.
"But it has prevented new Catholic schools from opening, which are more successful, more popular and more ethnically diverse than other types of state school.
"We're going to change the rule, so we can allow new Catholic schools to open, while making faith schools of all kinds do more to make sure their pupils integrate with children of other backgrounds."
