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10 January 2013, 11:33 | Updated: 10 January 2013, 11:45
A new 'super-prison' could be built in London.
The Ministry of Justice is considering 3 potential sites for the new institution in London, the north-west of England, and north Wales.
It would house more than 2,000 inmates, and would be Britain's largest prison.
A fesability study will now be carried out.
The programme is part of a drive to build new capacity to replace older prisons and bring down the cost of the prison system.
Six prisons at Bullwood Hall, Canterbury, Gloucester, Kingston, Shepton Mallet and Shrewsbury will close.
Three others in Chelmsford, Hull and Isle of Wight will see some accommodation reduced.
It is expected to save £63 million a year.