An £85 million "secure college" is to be built as part of Government plans to improve education for those under the age of 18 who are convicted of a crime.
Up to 320 young offenders aged between 12 and 17-years-old will be housed in the Leicestershire building, which is expected to open in 2017.
The facility will be run by a head teacher or principal rather than a prison governor, backed up by a team of education professionals who will care for inmates housed on the site in living blocks.
Justice Secretary Chris Grayling said: "Nearly three-quarters of young offenders who leave custody re-offend within a year; clearly the system as it is at the moment isn't working.
"It's right that the most serious or persistent young offenders face custody but we must use this time to tackle the root cause of their offending and give them the skills and self-discipline they need to gain employment or training upon release."
More top news
The Met Office is maintaining a severe weather warning in parts of eastern England through Tuesday and into Wednesday.
Blur frontman Damon Albarn and The Lewisham and Greenwich NHS Choir have been added to the final Glastonbury line-up.
Amber Heard's lawyers said her decision not to give an initial police statement has been used against her by Johnny Depp's legal team.