The prison population is predicted to rise by almost 25% over the next five years.
It is estimated that by 2013 there will be an average of 1,835 inmates each year behind bars - 355 more than the average number expected for the end of this financial year.
The predicted rises are understood to take into account those offenders who, from spring 2008, will receive an indefinite term behind bars as part of the new public protection laws.
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From May next year the authorities will be able to keep non-life prisoners behind bars indefinitely if they pose a risk to the public.
In response to a parliamentary question about prison population submitted by South Down MP Eddie McGrady, Mr Goggins said: "The service currently has 1,595 cells and plans to add a minimum of 180 additional places by the end of 2008/09.
"On February 21 this year, I asked the Prison Service to carry out an options appraisal on the development of the estate for holding adult male prisoners.
"I intend to make an announcement before the end of the year on the service's plans to meet the accommodation needs of the updated projected population."
Details of how much the development of the prison estate is likely to cost have not yet been revealed.
(GK)
