Melton Council's animal licensing officer found 'significant deterioration' in the dogs' accommodation and refused to issue an Animal Boarding Establishment licence saying urgent action was needed.
The Ministry of Defence conceded that the kennels
, in Welby Lane, Melton, needed to be replaced and said it was actively negotiating with the private company that manages them for this to be done.
In a statment it said: "We are fully aware the kennels at the Defence Animal Centre require replacement. Realm (the company) currently manages all of the facilities at the centre, and we are working urgently with them to establish how and when a replacement plan is to be put in place.
"At the same time, we are ensuring that the essential trained dog and handler output to the services continues to meet operational requirements.
"We have, and continue to be, in constructive negotiations with Realm which has acknowledged its responsibility for the proper repair and replacement of the kennels."
Melton Council's rural, economic and environmental affairs committee said it would defer a decision on whether or not to prosecute to give the two parties time to resolve the matter and it stressed that cleanliness at the centre was of a good standard.
However, it warned that if no solution can be found the matter will be referred back to a special meeting or its next meeting in November for further consideration.
The full article contains 265 words and appears in Melton Times newspaper.