Work on new prison in Wellingborough to start in June
Work on a new 1,680-place category C prison will start in June, the government has said.
The jail, to be built on the site of the former Wellingborough prison, will cost £253m.
HMP Wellingborough, just off the A45, in Northamptonshire, closed in December 2012 and resulted in the loss of almost 600 inmate places.
Prisons minister Rory Stewart said the announcement was "an important step forward".
Ministers confirmed a £253 million deal has been agreed with Kier for the design and construction of the new prison.
They hope to complete the work by autumn 2021.
The jail is one of five prisons the government has pledged to build as part of a plan to shut old Victorian jails.
Mr Stewart said the new prison would deliver "modern and decent prison places".
The town's MP, Conservative Peter Bone, campaigned for the site to be reopened.
At the time it was announced a new prison would be built in 2016 he said he was "absolutely delighted".