Magilligan Prison is set to remain open, it was revealed on Monday night.
Even though the authorities had considered plans to shut the jail in 2018, it has now emerged Justice Minister David Ford is reassessing the proposal, sources said.
“He is encouraged by the contribution of stakeholders in the North West on how rehabilitation of prisoners is best served at Magilligan,” one source added.
This will come as a massive relief to people in neighbouring Limavady, where traders feared the shutdown would deal a blow to the local economy.
Prison officers are to stage a rally at Stormont next Monday in protest against the jail’s proposed closure.
The minister consulted on the measure earlier this year. A final decision is expected in the New Year. He will make a statement to the Assembly on November 26 about his strategy for the whole Prison Service estate.
Mr Ford told the Assembly: “If I am convinced that locating a prison in the North West is indeed best for Northern Ireland, in terms of rehabilitating offenders, reducing offending and protecting the public, then that will be reflected in my final decision on the future of Magilligan Prison.”
The intention was to replace Magilligan with a new prison closer to Belfast. That sparked protest from the Prison Officers’ Association.
Finlay Spratt, chairman of the POA in Northern Ireland, has said senior members of the association’s national executive committee in London would be attending Monday’s rally.
A petition is to be handed to Mr Ford.
Magilligan, which opened in May 1972 on the site of a former army base, had been considered for closure in 2018 to be replaced with a new medium security prison nearer Belfast. Land close to the top security Maghaberry Prison near Lisburn, Co Antrim, was believed to be one option being considered as a site.
There are about 350 prison officers based at Magilligan which houses an estimated 500 low to medium risk male prisoners, most of whom have less than six years to serve.
Mr Spratt said: “We believe Magilligan has played a valuable role in the penal and justice system. Shutting is part of a long term plan by the authorities to have the prison system here privatised.”
East Londonderry MP Gregory Campbell has said if the relocation goes ahead all four prisons will be in the Greater Belfast area and the rest of the region will be left out.
He has also said it would cost £10 million in transport costs over the next three years and the Prison Service may have to buy more land.
Mr Ford said: “I recognise that in coming to a decision on the future of Magilligan prison we cannot ignore the impact that its closure would have on the local economy.”
The economic impact has not yet been quantified.
The minister added: “However, the future of Magilligan Prison cannot be based on one issue alone and ultimately my decision must be determined by what is best for the community in Northern Ireland in terms of rehabilitating offenders, reducing offending and protecting the public.”
“That is why I must take into account issues such as family links and rehabilitation and employment opportunities for offenders.
“With this in mind my officials are continuing to engage with stakeholders on how the needs of some prisoners might best be served by locating a prison in the North West and, if so, whether there is scope to build on and improve rehabilitation opportunities for prisoners there.”
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