STATE MP for Clarence Chris Gulaptis has denied a rumour there will be an announcement on Monday that Grafton Jail will close.
Instead of a closure, Mr Gulaptis said there will be an announcement of a restructure at the jail.
He said it was part of the State Government's cost cutting drive and the jail's age was also a consideration.
"There are a number of other factors that are just as significant," Mr Gulaptis said.
The MP said the restructure would involve job losses, but he said he was working with the Minister to ensure these were kept to a minimum.
Mr Gulaptis would not guarantee the jail would stay open.
"I've been told it won't close," he said.