Theresa May plans to strip British terror suspects of their citizenship and take away their UK passports even if it leaves them stateless, Whitehall sources have confirmed.

May wants to bring in legislation allowing the removal of a UK passport from any terror suspect whose conduct is "seriously prejudicial to the interests of the UK", in a move designed to make it harder for them to return to Britain if they travel abroad.

The home secretary already has the power to take away British citizenship from those with dual nationality, and since taking office May has confiscated the UK passports of 16 individuals alleged to have links with terror groups.

She has repeatedly said that a UK passport is a "privilege, not a right". Whitehall sources have reportedly said May believes it cannot be right that a person who has enjoyed the benefits of becoming a UK citizen should keep their passport if they act in a way that is "totally at odds" with British values.

The Financial Times reported that May had asked officials to find a way of overturning international human rights conventions that prevent individuals with only one citizenship from being made stateless. The necessary change to the law could be enshrined in an amendment to the immigration bill now going through parliament.

Human rights campaigners criticised the move, saying it legitimised the tactic of states such as Zimbabwe of using statelessness to clamp down on political dissent.

MPs are preparing to question Charles Farr, the Home Office's head of counter-terrorism, over the disappearance of a terror suspect, Mohammed Ahmed Mohamed, who was subject to surveillance measures.

May is reported to have promised to impose tougher restrictions on suspects under the terrorism prevention and investigation measures, known as Tpims.

Eight British terror suspects are on Tpims. It is unclear how the new powers might be used to make it easier to deport them as few countries are willing to take a stateless terror suspect.

The powers may prove useful to the Home Office in cases where the suspect has already travelled abroad to prevent them returning to Britain, but that raises issues about how they were able to leave the country in the first place.

Labour's shadow immigration minister, David Hanson, said: "Theresa May needs to concentrate on stopping people absconding in taxis, not suggesting legislative change that will have little immediate impact.

"These suggested changes could take years, will be legally questioned and won't help with the six terror suspects being allowed off terrorism prevention and investigation measures in two months' time."

The Home Office said the government would take "all necessary steps to protect the public", including pursuing deprivation of citizenship "where appropriate".

Last month the supreme court ruled against an attempt by the Home Office to revoke the British citizenship of an Iraqi refugee, Hilal al-Jedda, who was given asylum in Britain in 1992.

Jedda was accused of plotting atrocities against coalition forces after returning home during the Iraq war. Home Office lawyers argued that he could apply to have his Iraqi nationality restored, but the supreme court declared that making him stateless was illegal.