Speculation is growing that a new prison is to be built in Kilworth in north Cork today after Minister for Justice Michael McDowell paid a visit to the site.
The new 450-capacity facility would replace the severely overcrowded Cork Prison.
An announcement from Mr McDowell that he has secured Cabinet approval to build the new prison is expected shortly.
The 3,000 acre Lynch Camp site at Kilworth is owned by the Department of Defence. A working group was established late last year to examine the details of transferring ownership of the lands to the Department of Justice.
During a visit to Cork last November, Mr McDowell told The Irish Times that the proposal was an alternative to developing a purpose built prison on Spike Island in Cork Harbour to replace Cork Prison.
There has been vocal opposition to plans to redevelop Spike Ireland from local tourism interests seeking to promote the island's historical significance.
The National Development Plan contains an allocation of over €1.01 billion towards building new prisons and improving existing facilities.
The Prison Service said today the funding will be focused on meeting the needs of prisoners in custody, addressing their offending behaviour and supporting them in establishing crime-free lives after they are released.
"This funding will enable the Prison Service to develop modern rehabilitative facilities for prisoners," said director general Brian Purcell. "As well as delivering the infrastructure, the plan is also providing for the significant enhancement of services to prisoners. "The funding provided by the National Development Plan will allow us to develop a prison system fit for the 21st century."