The Greenfields building won't be demolished, but will be 'redesigned and redeveloped' instead.
That is despite pressure from the Jersey Care Inquiry Panel, which said the secure unit in St Saviour was 'entirely unsuitable'.
In its final report last September, the panel was also of the view that it wouldn't be capable of being transformed into a more appropriate facility.
They wanted it replaced with 'small homely units'.
"It is our view that the Greenfields building is entirely unsuitable for the care and welfare of distressed children and young people and that it would not be capable of being transformed into a more appropriate facility. It should be replaced with small homely units within which close support can be provided when necessary." - IJCI
In an official written response published this week, Children's Minister Senator Sam Mezec says the Council of Ministers supports 'the current approach to Greenfields, which acknowledges that there remains a need for secure places in Jersey albeit a very small number'.
It concluded that the purpose of Greenfields had become 'confused' but that it is safe as long as a 2:1 staffing ratio is maintained, and that it would benefit from 'some cosmetic refurbishment' to make it more child-friendly.
It also found that the educational package for 16 and 17 year olds is not sufficient and that the rehabilitation of offenders could be improved - but that 'there remains a requirement for some secure accommodation' - suggesting a maximum of two secure rooms.
Greenfields opened in 2006 with 8 secure bedrooms. It is now often empty.
The review found that it is now sees as a secure children's home, rather than a youth detention facility - and is used for 'secure care on an exceptional basis'.
Senator Mezec says a programme of work will be brought forward during 2020 to 'redesign and redevelop services on the current campus'.
It says this will include a 'significant decrease in the number of secure care places available'.