Tower Hamlets Council, the local authority involved in the case, dismissed newspaper reports that claimed the foster family did not speak English.
It said the five-year-old girl was placed with an English-speaking, mixed-race family as a temporary measure, and that it always intended to move her into a relative’s permanent care.
Family court judge Khatun Sapnara made the decision in London on Tuesday and is expected to issue an order on Wednesday.
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Tower Hamlets Council said there had been a number of ‘inaccuracies’ in media reporting of the case, but that it was prohibited from giving specific details.
It denied reports in some newspapers that a Muslim foster family was imposing its beliefs on the child.
In a statement, it said: ‘Tower Hamlets Council has the welfare of children at the heart of what we do.
‘The decision to choose foster carers for a child is based on a number of factors, including cultural background and proximity to promote contact with the child’s family and the child’s school in order to give them as much stability as possible.
‘We have always been working towards the child being looked after by a family member and we continue to do so.’