The Government has already earmarked 10,800 new homes to be built in the borough by 2026 as part of the West Midlands Spacial Strategy.
But as the Advertiser reported in October a revised government report suggested that Rugby's allocation of
new homes could be increased to 15,800.
As a deadline for the decision looms, the Campaign to Protect Rural England (CPRE), has warned the government not to increase the figure.
The group fear that villages in green belt land between Rugby and Coventry would be swallowed up and lost by additional housing.
Mark Sullivan, from the CPRE's Warwickshire group, said: "These reckless proposals from the consultants would seriously damage the town and the borough.
"They would change the character of the town, add to traffic congestion and result in unnecessary urban sprawl - like an octopus extending its tentacles out into the countryside.
"There is absolutely no justification for development on anything like this scale."
Mr. Sullivan also urged residents to make their views known while a consultation period on the plans is carried out up until December 8.
He added: "Rugby Borough Council have been consulting on ideas for distributing the new housing, but the overall scale of development will be decided by the Regional Strategy.
"So it's important that everybody has their say before it's too late."
At a meeting of Rugby Borough Council's Cabinet on Monday night, members agreed to advise the government not to extend the figure.
Speaking at the meeting, Neil Campbell, the council's Portfolio Holder for Economy, Development and Culture, said: "We still are strongly of the opinion that the government should not exceed 10,800 new homes.
"It's their decision to make but by replying to the strategy we can at least put this message across."
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