Corrective Services NSW is investigating the discovery of a man-made cavity beneath a cabinet at the Goulburn Jail.
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A spokesperson confirmed the cavity was found behind a cabinet in the furniture workshop, during a search operation at the Goulburn Correctional Centre.
The workshop is more than 100 metres from the outside walls of the prison. The cavity is about 600 millimetres deep and its entrance is 400mm by 180mm.
Reports of a "tunnel" first began circulating early on Monday morning, with 2GB radio reporting a source had revealed to radio personality Ray Hadley that "a murderer has been digging an escape tunnel at Goulburn".
But, on Monday morning NSW Corrective Services said "it is not yet known who made the cavity or its intended use."
The furniture workshop will remain closed to inmates until investigations have been finalised.
More to come