The Corrections Department is taking the first step to opening a prison for private management.
Parliament passed legislation in November to allow prisons to be contract managed on a case-by-case basis.
The department has now issued a request for information, which starts the process for that to happen.
Chief executive Barry Matthews says the department is currently consulting with prison officers, unions, Maori and other groups on a proposal to contract manage the Auckland central remand prison at Mt Eden.
Mr Matthews says Corrections Minister Judith Collins, also has a preference for a proposed new prison in South Auckland to be managed by a contractor.
Potential bidders will need to supply a range of information about their financial status, legal reputation, and their previous experience.
Responses to the request for information are due on 1 March.
