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
Police excavating a site on the Greek island of Kos say they have found pieces of fabric in their search for Ben Needham.
Donald Trump and Hillary Clinton have clashed in a fiery first presidential debate in the race for the White House.
The lucrative but illegal business of blast fishing is turning Tanzania's waters into killing fields on a devastating scale.