Mr Woolas said immigration policy should “provide confidence to the indigenous population that migration is under control”.

He added: “On a common sense level there has to be a limit to the population.”

The Government is currently introducing an Australian-style points system that grades would-be immigrants from outside the EU according to their qualifications, work skills and language ability. But the system still puts no overall limit on numbers coming in.

Mr Woolas said the Government should go further in limiting immigration.

He said: “On the one hand is the rationale that we have got to strengthen our economy.

“But we have got to provide reassurance to communities that the numbers coming in are not bad for us.

“Community cohesion is crucial. After the economy, it’s probably the biggest concern facing the population.”

He also signalled that there would be new restrictions on people coming from overseas to get married.

A cross-party group of MPs campaigning for tougher immigration curbs last night applauded Mr Woolas’s remarks.

Former Labour minister Frank Field and Tory backbencher Nicholas Soames, who head the all-party group on balanced immigration, said in a joint statement: “We welcome the remarks by the new minister for immigration in which he acknowledged the importance of limiting the growth in our population, much of which is due to immigration.

“We look forward to working with him to give these ideas practical form and we will be discussing them with the Home Secretary when we meet her this week.”

Shadow Home Secretary Dominic Grieve said: “We cautiously welcome the sentiment but we have had plenty of tough talk from New Labour before, which was only followed by zero action.”

The Muslim Public Affairs Committee condemned Mr Woolas’s appointment.

A spokesman said: “Phil Woolas has a track record of insensitive, inappropriate outbursts that have verged on Islamophobia.”