It is thought the organisation is looking at a number of sites for the new facility – six years after plans to replace HMP Inverness were first announced.
Earlier this week, HM Chief Inspector of Prisons for Scotland, David Strang, reported that the 112-year-old jail had problems with overcrowding and was in need of repair work.
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The SPS has since said it is working on finding a new site that is suitable.
Speaking to BBC Radio Scotland, SPS spokesperson Tom Fox, said: "We require to identify a site before we can begin the procurement process to find someone to build a new prison, and that is not something we are going to be able to achieve overnight.
"I think it is fair to say the Scottish Government has been very generous to the prison service over the last few years in terms of allowing us to do a major refurb of our estate."
He added that before funding for the project could even be sought, a suitable site would need to be found, the land would then need to be purchased and outline planning permission for the prison would need to be approved.
(JP/IT)
