Property developers, The Osborne Group, today exchanged contracts on the property.
The Osborne Group has undertaken a large number of development projects in the past including the transformation of former Oxford Prison into a Malmaison hotel complex.
Welcoming the news this morning, Shrewsbury & Atcham MP Daniel Kawczynski said: "The Osborne Group has considerable experience of working with historic buildings and I understand that this was a factor that was considered by my colleagues at the Ministry of Justice when they selected the preferred buyer.
"I am confident that they will undertake the redevelopment of this iconic building to the highest standard and in a way that will preserve the history of its former use.
"The mixed use will complement the surrounding environment as well as provide employment opportunities for Shrewsbury. With no significant retail use planned for the site, I am confident that the development will not impact on trade within Shrewsbury's existing shopping areas, which I am pleased about.
"I have received many requests from residents wishing to look around the former prison prior to it being developed. I hope that the new owners may be amenable to providing access to the public in some way and I will shortly be having those conversations with them.
"Appropriate permissions will now need to be obtained by The Osborne Group from Shropshire Council's planning department and it will be at this stage that finer details of the redevelopment will be known and consultation with the public and appropriate organisations will be undertaken."
See Friday's Shropshire Star for more on this story and reactions to the sale