Existing staff will continue to run the site but the Home Office will meet the costs of its operation. Offenders housed at The Verne will be moved to other suitable prison accommodation.
More top news
A manhunt is underway after two men were shot - one fatally - at a residential site on Thursday evening on 5 May.
More than 2,000 young people are gathering on Dartmoor today ready to take part in the Ten Tors challenge.
Alex has your forecast: Mild start to Friday with good sunny spells.