JUSTICE minister David Ford highlighted that Magilligan achieved the highest mark possible for prisoner resettlement, noting that was a first for any prison in Northern Ireland.
But he acknowledged that further work is required in other areas.
"Magilligan Prison has achieved positive outcomes in three of the four healthy prison tests and the inspectors highlighted staff-prisoner relationships, levels of safety, and resettlement as areas where good work is being delivered," he said.
"The report also highlights where further progress is needed, in particular on purposeful activity. The Prison Service is already taking steps to address this issue by working with education professionals from North West College to deliver real outcomes for people in custody.
"Since the beginning of the reform programme, the Prison Service has been at the forefront of looking at new ways to deliver for the people of Northern Ireland. This innovative approach will continue at Magilligan and across the Service."
Director general of the Prison Service Sue McAllister said: "This report reflects the significant progress that has been made at Magilligan. While I acknowledge the comments made by the inspection team in respect of purposeful activity, it is important that we do not lose sight of the over-all progress in the prison.
"Receiving the highest mark for resettlement is a significant milestone for the Prison Service, the first time we have received this assessment. Resettling prisoners back into the community is a critical part of our work to build a safer Northern Ireland.
"This has been delivered by our staff who have developed good relationships with the prisoners and the wider community in the north west.
"It is also well recognised that the buildings and facilities at Magilligan require significant improvement. The proposed new build at Magilligan will help to address the issues highlighted by the inspectors.
"In the interim, the experienced senior team and the staff at Magilligan will continue to build on the progress and will address the recommendations in the report."
* REPORT: Magilligan Prison in Co Derry. Inset, justice minister David Ford