The Ministry of Justice has confirmed that Barbara Stow, former assistant prisons ombudsman, will chair the first stage of an investigation into the woman's treatment and whether it broke human rights obligations.
The young woman, known as SP, repeatedly harmed herself in prison and was taken to hospital at least 20 times in jail between 2003 and 2005.
SP, who is now 22 and in a secure mental hospital, said her treatment in prison contributed to her deteriorating mental health.
The original chairman of the inquiry was Stephen Shaw, the Prisons and Probation Ombudsman who quit last year.
The Ministry of Justice then appointed a retired senior Prison Service manager Brian Payling as the new chairman but the Howard League for Penal Reform, which represents SP, successfully challenged that in the courts.
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