Former prison cells could be turned into student accommodation under developers' plans
HMP Shrewsbury, also known as The Dana, was closed by the Ministry of Justice in March 2013 as part of plans to save £63m.
The Grade II-listed building was bought by the Trevor Osborne Property Group last year, which was also responsible for turning Oxford prison into a hotel.
It is believed The Dana could house up to 200 students.
Plans for the prison, which dates back to 1877, also include offices and other accommodation on the three-acre, town centre site.
Any proposals would still require planning permission.
Its future as possible student flats follows the creation of a new campus in the town last year.
University Centre Shrewsbury, set up in partnership with the University of Chester, is expected to welcome its first undergraduates in September.
The former Guildhall in Frankwell has been named as the main teaching base, while Shropshire Council has considered a number of options for accommodation, including converting part of Mardol House into flats.
Eventually, the university campus is expected to cater for up to 2,000 students.