Up to 300 Danish prisoners will serve their prison sentences in Kosovo to ease overcrowding, in line with an agreement currently being negotiated by the two governments, Justice Minister Nick Haekkerup says.
He also said that capacity in Danish prisons is to be expanded as 1000 further places would be needed by 2025.
The agreement would be signed on Monday, the Kosovan Justice Ministry said.
Detainees from third countries awaiting deportation are to be held in Kosovo under the same rules as apply in Danish prisons.
Haekkerup said he was convinced that the agreement would stand up to scrutiny by the European Court of Human Rights, the Danish news agency Ritzau reported.
The agreement is due to apply from 2022 to 2025.
Norway concluded a similar agreement with the Netherlands in 2015, which ended in 2018.
As compensation, Kosovo will receive 210 million euros ($A329 million) from Denmark, the Justice Ministry in Pristina said, adding that the money is to be used partly for capital investments, especially for renewable energy development.
Some of the funds will also be used to improve infrastructure in Kosovo's penitentiary system.
