He said the IPS has already told 60 temporary staff in Durham that their contracts will end this month, three months early, and that employees and unions will be told more about reduced staffing levels over the next few weeks.
The move follows the new government's abolition of plans for national identity cards and fingerprints on passports, which have accounted for a substantial proportion of the agency's work.
"Our aim is, as far as possible, to redeploy permanent staff affected and take all action possible to avoid compulsory redundancies," Green said in reply to a parliamentary written question from Labour MP Paul Goggins.
He added, in response to a question from former Labour home secretary David Blunkett, that the savings figures quoted for cancelling identity cards and fingerprint biometric passports, of £86m and £134m respectively, are estimates.
"The cost implications of terminating and amending certain National Identity Service contracts are currently a matter of commercial negotiation with suppliers, to protect taxpayers' interests," he said. "It is therefore not possible to give the cost of cancelling those contracts at this time."
In a House of Commons debate on the same day, home secretary Theresa May said that it was likely to cost about £5m this year to end contracts, write off equipment, contact cardholders and securely destroy information. However, as well as the government savings of £220m, the public would avoid extra charges of £800m over the next decade, which she called "a Millennium Dome's worth of savings".
