Corby Borough Council has been ordered to pay families affected by the clean-up of former steelworks in the town an initial £1.6m to cover legal fees.
The council was found to be negligent over the work which may have led to birth defects in 16 children.
Last month, the children’s families won a High Court case against the council.
According to reports, the council is to meet next week to decide whether it should appeal against the judgement.
The 680-acre British Steel works in the Northamptonshire town closed in 1980 after which the buildings were demolished with waste removed to a nearby quarry.