Serious disorder has reportedly broken out in a wing of a jail run by security firm G4S.
Up to 60 inmates are believed to have been involved in the "ongoing incident" at Oakwood Prison, which a company spokesman said has now been contained.
Weapons may have been involved, according to Sky's Home Affairs Correspondent Mark White.
Extra resources were brought it to try and contain the disorder, including 'tornado' squads of prison officers wearing riot gear who are specially trained in public order.
It is not known what triggered the problem at HMP Oakwood, in Featherstone, near Wolverhampton.
The jail was the scene of a number of rooftop protests last year.
The G4S spokesman said: "We can confirm that there is an ongoing incident taking place on a wing at Oakwood prison.
"The situation is contained and we are applying standard procedures to manage the incident."
White said: "We understand it has been a serious incident."
He added: "It may still be going on in the wing. But as far as the wider prison is concerned, the disorder has been contained to that wing."
A spokesman for Staffordshire Police said the force was aware of the incident and was offering support and assistance to G4S.
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