US jail group gets Vic contract extension

A Victorian prison will be upgraded and refurbished as part of a $1.45 billion contract between the state government and the Australian arm of a US prison operations company.

GEO Group Australia has owned and operated the 940 bed Fulham Correctional Centre in the state's east for the past 18 years, and has now secured a contract extension for up to 19 years from July 1 next year.

"The new arrangements include necessary investments to refurbish the prison as required over the extension term," Corrections Minister Wade Noonan said in a statement on Tuesday.