A $300 million facelift of the 131-year-old prison and its inner-city site were announced by Public Works Minister Tim Mander and Leighton Properties executive Gavin Tonnet on Wednesday.

Mr Tonnet eventually confirmed that the best preserved three-storey cell block, finished in 1901, would most likely become a museum.

Two other three-storey cell blocks would likely become dining and bar areas, he said.

The original prison courtyard would to be transformed into a small public park.

This immediately shocked prison tour operator Jack Sim, who has built a small business running a range of tours at the prison.

"I was shocked because people are paying admission fees to come to the prison, to see the inside of the prison and the cells," he said.

"That's what they are paying for and that's what provides a revenue stream to keep the jail operational.

"And hell, that's my staff's jobs on the line."

Mr Sim said people being able to walk inside the prison and some of the prison cells would feel reluctant to pay for a tour.

"If people don't feel it is worth paying for, they won't come."

Mr Tonnet said the company wanted the tours to stay.

But it was Mr Mander who finally explained the likely outcome for Mr Sim.

"Part of the tour is to hear the story and no-one tells the story like Jack Sim," he said.

"He's full of the knowledge of the place and it will only add value to any tour by getting someone of Jack's knowledge taking it.

"I have no doubt that patronage of his tours will increase."

The western, or Annerley, side of the prison will remain untouched, Mr Tonnet said.

Some recent additions to the prison will be removed, he said.

He said Leighton's wanted to open up the prison to more people.

"Boggo Road Goal is a unique public asset, but experienced by very few," he said.

"Through interpretive planning and sensitive design, the proposal seeks to retain the aesthetic and social significance of the area and transform it into a public space that incorporates educational opportunities, tours and a museum."

There will 500 units - one, two and three bedroom - built in two zones to the north and south of the prison.

The markets will be run by the operators of New Farm's James Street Markets, Callie Malouf Investments.

An "Eat Street" type of street market is planned to run in the space between the Queensland Government's existing EcoSciences Building and the 131-year old prison.

Housing Minister Tim Mander describes the future site as modern, mixed use site, with markets inside the prison walls.

"Under the proposed plans the site will be transformed into a modern, integrated mixed use site that features cafés, restaurants and a market place within and around the gaol's walls," he said.

Fairfax Media is aware one cell block has recently been hired out for a 21st birthday function.

What is planned for the Boggo Road prison site at Annerley

- 500 units in five different zones to the north and south of the prison;

- the units willbe a mix of one, two and three bedrooms.

- a permanent new market area on the outside front of the prison;

- that new market area wil be run by the James Street Market operators from New Farm;

- estimated to create 1200 jobs during construction;

- the Boggo Road prison will stay owned by the state government;

- Boggo Road prison tours to stay, but will have to change;

- the three cell blocks to be transformed into a museum and two dining/bar type venues;

- There will be no accommodation at the refurbished prison;

-Estimated overall cost to Leighton Properties is $300 million.