Miss E., whose full name cannot be revealed, took her case to the Court of Appeal after she was refused a place at Holloway prison's mother-and-baby unit for being too disruptive.

The 24-year-old, who gave birth earlier this month, was threatened with having her taken into care.

She has been told she can now transfer to Styal prison, near Manchester, if she signs a good behaviour pledge.

The Prison Service said: "As with all mothers admitted to the unit, this mother will have to sign a contract agreeing to cooperate with the regime at the unit and setting certain standards of behaviour.

"If this contract is broken in any way, consideration will have to be given to her removal from the unit."

Miss E., a former psychology student from south London, is expected to move from hospital in London to the unit at Styal prison on Friday.

She is serving a five-year sentence for wounding with intent and was refused a place at Holloway's mother-and-baby unit by prison governor Mike Sheldrick on grounds of alleged violence and unpredictable behaviour.

The Prison Service, prison officials, social services and probation staff decided to review her case half-way through a hearing at the Court of Appeal, brought by Miss E..

At Styal prison, she will be able to live in the unit with her daughter, who was born on 3 November and who suffers from a chromosomal abnormality.

Director of the Howard League for Penal Reform, Frances Cook, supported Miss E's case.

She welcomed the decision and said: "It's a sensible compromise. She is very happy and relieved."