Hatfield Prison and young offenders institution is part of a complex near Thorne, Doncaster, which includes Moorland and Lindholme prisons.
As a result of a recent Government competition, Hatfield will transfer to the private sector after three separate bids have been examined by the Ministry of Justice. The inspection took place in October.
Nick Hardwick, the chief inspector of prisons said: “Hatfield is a good prison that could be even better.
“It was striking that, despite what it had to offer and the fact that prisoners were actively and positively engaged, in our survey, only a fifth of prisoners felt supported in preparing for release.
“There was a clear need to ensure that all connected to the prison were more supportive of its primary purpose.”
Michael Spurr, chief executive officer of the National Offender Management Service (NOMS), said: “It is to the credit of the Governor and her staff that the good work at Hatfield has been highlighted during this time.”