The new school called Oasis Restore is being built in the shell of Medway Secure Training Unit in Kent, a custodial centre that shut down two years ago.
The school, which is expected to cost around £26m, will see young offenders go straight from the courtroom to the classroom, with every single pupil enrolled in formal education or training and encouraged into further learning or employment on release.
The old prison-style features at Medway are to be stripped out with the finished site designed to look like a residential school rather than a custodial facility, within secure prison walls.
It will be run by education provider Oasis Restore rather than the Prison Service.
In a separate contract award Galliford Try has also announced today that it has signed off a deal with Worthing Borough Council to build the £30m Worthing Integrated Care Centre development.
The new facility will provide GP, mental health, community and dentistry services, a pharmacy and additional services for families and young children. A multi-storey car park will also be built at the site.
Bill Hocking, Chief Executive of Galliford Try, said: “Our Sustainable Growth Strategy of maintaining strong positions on public sector frameworks and collaborative relationships with local authorities are borne out by these two contract wins.
“We look forward to working with all the stakeholders involved to produce the high-quality public facilities that local communities deserve.”