Vanuatu's High Risk Prison in Port Vila, known locally as 'Container City', is to be shut down as it is not fit for inmates to live in.
The Daily Post reported the decision was made by the Minister of Justice and Community Services, John Still Tari Qetu.
Container City is so-called because the living quarters were built from bulk cargo containers.
National Human Rights Coordinator Albert Nalpini visited the facility last month.
"From that visit, we observed that the facility is not fit to keep detainees inside and does not fit the standards set by the United Nations," he told the newspaper.
"The property was built in 2009 on a temporary basis…it was supposed to be used only for three years."
However, Nalpini said this has not been the case.
"Over the years, the temporary foundation and structure of the facility has been shifting, and is no longer secure," he said.
"In addition to that, the fire that broke out in the container this year had destroyed three cells and caused a lot of leakage in the roofing of the containers, and rust on the irons leading to deterioration of the cells."
Vanuatu Correctional Services director Johnny Marango told the Daily Post the high-risk detainees would be transferred to the Medium Risk Facility in the following weeks.
The High Risk Facility used to be called the British Prison during the colonial era until independence 40 years ago.