The Youth Justice Board (YJB) is planning to build the unit to accommodate 15- to 17-year-old men, on land belonging to Glen Parva Young Offender Institution (YOI) in Leicester.
The YJB hopes the facility will create a better distribution of secure places in the Midlands, as well as more closely match the demand for custodial places for young people from the region.
The unit will mean more young people from the Midlands can be placed closer to home, which the YJB says will allow them to maintain the "crucial" links to their home communities - improving the chances of successful resettlement on their release.
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