The 100-strong task force, to be announced tomorrow, will train staff on how to deter offenders from being radicalised and advice jails on how to deal with dangerous prisoners.
"Extremism is a danger to society and a threat to public safety. It is right we come together to bolster our response to the threats posed by radicalisation behind bars, and give our hard-working staff the skills and knowledge they need to keep our prisons and communities safe," said Sam Gyimah, the UK's prisons minister.
The squad will have its "strategy centre" in London, with a number of specialist teams in regions around the UK.
The idea was included in a White Paper put out to consultation in November 2016.
"Extremism in prison endangers prisoners and staff, encourages criminal behaviour and terrorism, and undermines the proper functioning of the justice system," it read.
The new task force - jointly formed between HM Prison and Probation Service and the Home Office - will work closely with police and other enforcement agencies.
Other measures already taken include an instruction to governors to ban extremist literature and remove anyone from communal worship who is promoting anti-British beliefs or other dangerous views.
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