Work to build a new prison on the site of mothballed HMP Wellingborough is expected to begin next year.
A year ago the government confirmed the category C prison in Northamptonshire would be the first redevelopment site in its modernisation drive.
Wellingborough Borough Council’s planning committee unanimously approved the proposal in April.
Companies have since been chosen to draw up detailed designs for the new prison, which will house 1,600 men.
The jail is one of five prisons the government has pledged to build by 2020 as part of a plan to shut old Victorian jails.
A Ministry of Justice spokesperson said: “We launched a tender exercise in spring 2017 to deliver detailed design work at the Wellingborough proposed site.
“We have now completed the tender evaluation and informed the bidders of the outcome of their bids to deliver the detailed design work for these prisons.
“We anticipate that work will begin on the HMP Wellingborough site in 2018.”
Conservative MP for Wellingborough Peter Bone said it was “a great thing for the town”.
Mr Bone said the campaign for the prison to be reopened had been “terrific” and it would be “good for the economy” of Wellingborough.
HMP Wellingborough, just off the A45, closed in December 2012 and resulted in the loss of almost 600 prison places.