The Ferodo site near Caernarfon was withdrawn as a possible prison location
Gwynedd council is to further discuss proposals for a new prison site after a previous location was rejected.
The former Army camp at Tonfannau, near Tywyn, is being "seriously considered" by the local authority.
In September 2009, a car components plant at Caernarfon was deemed "not suitable" by the UK government.
Justice Minister Maria Eagle has previously said sites in north Wales, London, the north west and West Yorkshire were being studied.
She said the areas under consideration were where "the greater number of prisoners come from".
Plans to build a prison at the former car components plant best known as Ferodo - and later as Dynamex - were withdrawn because Ms Eagle said it was "not suitable for prison development".
It was estimated the site could have created 700 jobs.
Gwynedd councillors last month voted to "adopt the motion, namely that the Tonfannau site near Tywyn be seriously considered as a location for the proposed new prison for north Wales".
On Tuesday, the council's Development Scrutiny Committee will discuss the proposal further.
A report, to be discussed at the meeting, says: "Since the meeting of the council, correspondence has occurred with the government's Justice Department (Westminster), and we hope to be in a position to give a verbal report on the response at the committee."
A shortlist of potential sites is expected to be published once proposals have been submitted.
Last year, the shortlist in Wales included Cwmbran's police training centre, a brownfield site east of Merthyr and Wrexham's former Firestone site, before selectors eventually chose the Ferodo land in Caernarfon.