Lincoln Prison could close and the building used to house illegal immigrants awaiting deportation.
The Echo can reveal a review of the Greetwell Road site is being undertaken by the Ministry of Justice.
A decision on its future is expected to be made within the next ten days.
If closed, around 500 jobs will be lost and 750 prisoners sent to various sites outside of the county – such as Hull, Nottingham and Peterborough.
Lincolnshire County Council leader Martin Hill is writing a letter to minister Chris Grayling opposing the change.
He says he is willing to fight hard in a bid to prevent any possible closure.
"This is a very big issue," said Mr Hill.
"It is a massive issue for the whole criminal justice system as well as the prison service.
"My biggest concern is the effect it will have on the rehabilitation of our prisoners and their families.
"These people will be stuck in a cell, sometimes for a long time.
"If a prisoner has been transported a long distance from their family they will miss them more because they will see them less.
"Holding prisoners locally helps them maintain their links to the community – this is essential for reducing reoffending rates.
"Lincoln is a very important centre and there is a real need for a prison in the city.
"It would be a huge loss if the prison was to go.
"The effect on the prisoners' family members would be massive because of the added transport costs.
"I understand criminals are in prison for a reason and should be punished.
"But the families have not committed a crime and yet they are being greatly penalised."
Referring to the proposed new immigration centre, Mr Hill said: "There is absolutely no need for a second immigration centre in the county.
"Lincolnshire's immigrant population is small.
"This means people would be brought in from other parts of the country – most probably followed by their families.
"These families are likely to need a lot of support, putting further pressure on local services.
"So while the change might represent a saving to the prison service it will certainly mean additional costs for everybody else."
Lincoln Prison opened in 1872 after the jail was moved from Lincoln Castle – now home to the city's crown court.
But Mr Hill predicts the prison closing will lead to the same happening at the crown court.
"It certainly will not help," he continued.
"Obviously, the economic argument comes into play that with no remand prison, there is far less importance on Lincoln having a crown court.
"Lincolnshire County Council does not want to jeopardise the location of Lincoln Crown Court. Lincolnshire is an important, growing and historic county that should certainly have its own crown court."
Justice Secretary Mr Grayling could decide to downgrade the site from a category B to a category C prison, without a remand facility. This would see around 250 jobs lost.
Category B prisoners are those who don't require maximum security, but for whom escape needs to be made very difficult.
Category C prisoners are those who cannot be trusted in open conditions but who are unlikely to try to escape.
Mr Hill added: "As far as I can see, there is just no argument for the closure or downgrading of Lincoln Prison.
"It just doesn't stack up whatsoever.
"We are the county council and if there are tough decisions to be made then we will make them as we have done in the past but this doesn't make sense.
"It would be very regrettable if were to lose the prison and there would be great difficulty if were to have to have this immigration centre."
For the county council, today's news is clearly cause for concern.
But for other major organisations, it is not only worrying – it is also a total shock.
The City of Lincoln Council had no idea a possible change was on the horizon.
Chief executive Andrew Taylor said: "The City Council is both extremely concerned and disappointed that there has been no wider, direct public consultation on this matter. We have only heard today (Thursday, November 1) second-hand, about the proposals and are now awaiting further details.
"We will do all we can to ensure that the direct and indirect social and economic consequences of this decision are fully taken into account."
When approached by the Echo, Lincoln Prison's newly-appointed governor Peter Wright referred questions to the Ministry of Justice.
A prison service spokesperson at the Ministry of Justice told the Echo no final decision had been made,
"We are considering changes to the future role of HMP Lincoln. No decisions have been made and there are currently no plans to close the prison.
"We are committed to ensuring our estate meets the needs of the prison population and best suits the current capacity," he said.
"Any changes to the role of HMP Lincoln would also need to incorporate the ongoing requirement to deliver prisoners to and from the area's courts."
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The Echo can reveal a review of the Greetwell Road site is being undertaken by the Ministry of Justice.
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Outrage: Lincolnshire County Council leader Martin Hill outside Lincoln Prison
If closed, around 500 jobs will be lost and 750 prisoners sent to various sites outside of the county – such as Hull, Nottingham and Peterborough.
Lincolnshire County Council leader Martin Hill is writing a letter to minister Chris Grayling opposing the change.
He says he is willing to fight hard in a bid to prevent any possible closure.
"This is a very big issue," said Mr Hill.
"It is a massive issue for the whole criminal justice system as well as the prison service.
"My biggest concern is the effect it will have on the rehabilitation of our prisoners and their families.
"These people will be stuck in a cell, sometimes for a long time.
"If a prisoner has been transported a long distance from their family they will miss them more because they will see them less.
"Holding prisoners locally helps them maintain their links to the community – this is essential for reducing reoffending rates.
"Lincoln is a very important centre and there is a real need for a prison in the city.
"It would be a huge loss if the prison was to go.
"The effect on the prisoners' family members would be massive because of the added transport costs.
"I understand criminals are in prison for a reason and should be punished.
"But the families have not committed a crime and yet they are being greatly penalised."
Referring to the proposed new immigration centre, Mr Hill said: "There is absolutely no need for a second immigration centre in the county.
"Lincolnshire's immigrant population is small.
"This means people would be brought in from other parts of the country – most probably followed by their families.
"These families are likely to need a lot of support, putting further pressure on local services.
"So while the change might represent a saving to the prison service it will certainly mean additional costs for everybody else."
Lincoln Prison opened in 1872 after the jail was moved from Lincoln Castle – now home to the city's crown court.
But Mr Hill predicts the prison closing will lead to the same happening at the crown court.
"It certainly will not help," he continued.
"Obviously, the economic argument comes into play that with no remand prison, there is far less importance on Lincoln having a crown court.
"Lincolnshire County Council does not want to jeopardise the location of Lincoln Crown Court. Lincolnshire is an important, growing and historic county that should certainly have its own crown court."
Justice Secretary Mr Grayling could decide to downgrade the site from a category B to a category C prison, without a remand facility. This would see around 250 jobs lost.
Category B prisoners are those who don't require maximum security, but for whom escape needs to be made very difficult.
Category C prisoners are those who cannot be trusted in open conditions but who are unlikely to try to escape.
Mr Hill added: "As far as I can see, there is just no argument for the closure or downgrading of Lincoln Prison.
"It just doesn't stack up whatsoever.
"We are the county council and if there are tough decisions to be made then we will make them as we have done in the past but this doesn't make sense.
"It would be very regrettable if were to lose the prison and there would be great difficulty if were to have to have this immigration centre."
For the county council, today's news is clearly cause for concern.
But for other major organisations, it is not only worrying – it is also a total shock.
The City of Lincoln Council had no idea a possible change was on the horizon.
Chief executive Andrew Taylor said: "The City Council is both extremely concerned and disappointed that there has been no wider, direct public consultation on this matter. We have only heard today (Thursday, November 1) second-hand, about the proposals and are now awaiting further details.
"We will do all we can to ensure that the direct and indirect social and economic consequences of this decision are fully taken into account."
When approached by the Echo, Lincoln Prison's newly-appointed governor Peter Wright referred questions to the Ministry of Justice.
A prison service spokesperson at the Ministry of Justice told the Echo no final decision had been made,
"We are considering changes to the future role of HMP Lincoln. No decisions have been made and there are currently no plans to close the prison.
"We are committed to ensuring our estate meets the needs of the prison population and best suits the current capacity," he said.
"Any changes to the role of HMP Lincoln would also need to incorporate the ongoing requirement to deliver prisoners to and from the area's courts."
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