Out line planning applications are set to be submitted for the sites in Full Sutton in Yorkshire; Hindley in Wigan; Rochester in Kent and Port Talbot in South Wales.
Justice Secretary Elizabeth Truss said: “We cannot hope to reduce reoffending until we build prisons that are places of reform where hard work and self-improvement flourish.
“Outdated prisons, with dark corridors and cramped conditions, will not help offenders turn their back on crime – nor do they provide our professional and dedicated prison officers with the right tools or environment to do their job effectively.
“This significant building programme will not only help create a modern prison estate where wholescale reform can truly take root, but will also provide a thriving, economic lifeline for the local community – creating hundreds of jobs for local people and maximising opportunities for businesses.”
The announcement comes weeks after the opening of the £212m HMP Berwyn in north Wales which was built by Lendlease.