Convicted Islamist extremists will be held in separate prison units after an inquiry warned "self-styled emirs" were radicalising others behind bars.
A government-ordered review also suggested "cultural sensitivity" among staff towards Muslim prisoners could "inhibit the effective confrontation of extremist views".
The full report is classified but the Ministry of Justice has published a summary of the main findings.
It said the review found evidence that Islamist extremism is a "growing problem" within prisons, and this can manifest itself in various ways.
The report describes some offenders advocating support for Isis and cites examples of "charismatic" prisoners acting as "self-styled emirs" - exerting a "controlling and radicalising influence" on the wider Muslim prison population.
The report was commissioned last year by then-justice secretary Michael Gove.
Scrutiny of the issue resurfaced last week when it was revealed that Anjem Choudary faces years in jail for drumming up support for Islamic State.
Introducing the measure in order to stop a small number of individuals from being able to "proselytise" to other inmates was one of the review's key recommendations.
In an interview, Justice Secretary Liz Truss said: "Islamist extremism is a danger to society and a threat to public safety - it must be defeated wherever it is found.
"There are a small number of individuals, very subversive individuals, who do need to be held in separate units."