The British passport is to become blue after Brexit, however many have been angered by reports claiming it is to be made by a French-Dutch company called Gemalto, as the British company which made British passports previously, De La Rue, has said ti has lost the contract.
Shares in De La Rue, which has produced United Kingdom passports for the last decade, fell 6% on the news.
Shares in De La Rue, which earlier this week warned that profits would come in the bottom of expectations, were down almost 6% on the London Stock Exchange following the news.
The firm undercut rival bids by around £50 million, the newspaper said.
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"I'm going to have face those workers, look at the whites of their eyes and try to explain to them why the government thinks it's a sensible decision to buy French passports and not British passports", he told the BBC.
According to the Guardian, a Home Office spokesperson said that no final decision has yet been made. A Dutch-French company will print them instead.
He added the move amounted to "offshoring the manufacture of a British icon" because new passports would be "manufactured in France".
Tory MP Sir Bill Cash said awarding the contract to an EU-based company would be completely wrong and unnecessary.
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During often bitter campaigning during the June 2016 referendum on whether to leave the European Union, which Britain joined in 1973, some Brexit supporters called for a return of the blue passports, issued from 1920 to 1988.
Sir Vince - who is campaigning for a second referendum on the Brexit deal - said the statement showed that other European Union states would "welcome an exit from Brexit with open arms".
"We are running a fair and open competition to ensure that the new contract delivers a high quality and secure product and offers the best value for money for customers", the spokesperson said.
However, pro-Brexit former cabinet minister Priti Patel said the decision to make the passport overseas was "disgraceful" and "perverse". A proportion of passports have been made overseas since then with up to 20 percent of blank passport books now produced in Europe with no security or operational concerns. The return of our iconic blue passport will re-establish the British identity.
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"All these Brexiteers claim to be champions of global free trade until it doesn't work out for their interests - at which point they magically transform into angry isolationists who don't back British firms to compete around the world", a spokesman said.