A youth justice centre once plagued by staff assaults, riots, and escapes is set to reopen two years after it was closed.

Victoria's Corrections Minister Enver Erdogan confirmed on Tuesday, the Malmsbury Youth Justice Centre would reopen to house young people held under the state's new bail laws.

The facility, located in central Victoria, originally closed due to a decline in the number of young people in custody and the opening of new, purpose-built facilities.

"Our tough new bail laws are working - remand numbers are up - so we need more prison beds for young people," Mr Erdogan says.

"We are expanding the youth justice system to take serious youth offenders off the streets while also providing opportunities to lower-risk young people to get back on track and away from crime."

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