The establishment, described by government as a ‘fortified school’, will be run by a head teacher alongside a leadership team made up of educational professionals and offender managers.
Alongside the creation of the secure college - earmarked to open in 2017 - the government has announced plans to improve education in publicly-run young offender institutions (YOIs).
It wants to more than double by the end of the year the hours of education that young offenders receive each week from the current average of 12.
Deputy Prime Minister Nick Clegg said the new arrangements will afford young people the opportunity to turn their lives around.
“Some young offenders spend less than one school day a week in the classroom,” he said.
“By increasing the amount of time young offenders spend learning, we can help them to move away from crime, take responsibility for their actions, and rebuild their lives.”
Justice Secretary Chris Grayling said the fact that nearly three quarters of young offenders who leave custody reoffend within a year shows that the current system is not 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."
However, the plans have provoked criticism from youth justice campaigners.
Penelope Gibbs, chair of the Standing Committee for Youth Justice (SCYJ), said young people in custody have a range of very serious needs including mental health problems, drug and alcohol addiction, and histories of abuse, trauma and violence.
“Simply focusing on education is misguided and will not address the underlying causes behind their offending that need to be tackled if children are to be turned away from a life of crime,” she said.
“A more holistic therapeutic model is needed rather than a gimmicky repackaging of our current costly and broken approach to child custody.”
Frances Crook, chief executive of the Howard League for Penal Reform, said the "millions of pounds" set to be spent on the new facility would be better invested in community support for children.
“Children in prison have a range of complex needs, including mental health problems, learning difficulties, self-harm, and histories of abuse and neglect," she said.
"Low levels of education must be seen as symptoms of these underlying problems.
"Tackling the fact so many children in custody have been excluded from school in the first place would be more likely to produce the positive outcomes we all want to see."
Juliet Lyon, director of the Prison Reform Trust said that while education is vital, the secure college plan is not the best way to improve outcomes.
"Small, local, intensively staffed units with a focus on taking responsibility, making amends to victims, gaining skills for employment and having a safe home to go to will cut crime far better than putting hundreds of teenagers together in over-large institutions,” she said.
The Secure College has been earmarked to be built on land adjacent to Glen Parva YOI in Leicestershire, an establishment for young adult offenders, with construction due to get underway next year.
Once finished, it will serve young offenders aged between 12 and 17 from the Midlands and the East of England, although offenders from other areas could also be taken.
Each young person will have an Individual Learning Plan that they will be expected to achieve while in custody, and which will continue after release in the community under the supervision of the local youth offending team.
The idea of creating a secure college was first floated in a government green paper published last February, although the initial proposals were for a network of them.
