Corrections Minister Shane Rattenbury has directed officials to investigate how video footage showing a fight inside Canberra's Alexander Maconochie Centre emerged on social media.
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Mr Rattenbury confirmed the 34-second video clip posted on YouTube on Friday was filmed inside one of the prison's cells, most likely sometime before July 27.
Rejecting suggestions there was a fight club operating inside the AMC, said the video's distribution had been isolated and the participants faced criminal charges and internal punishment by prison authorities.
YouTube has so far declined to remove the footage from its website, but has restricted viewing to people over 18.
Targeted searches have been undertaken in the wake of the footage being reported, with a mobile phone and other contraband items seized.
It is not known if the phone was used to record the footage and Mr Rattenbury's office would not comment on the identity of YouTube user "patrick hickson" who posted the footage online.
"Jails are full of people who unfortunately resolve matters through violence," Mr Rattenbury said.
"There is a constant effort by ACT Corrections to minimise the level of violence. We've got a very strong culture in the ACT in reducing violence, and we've not seen a single prisoner-on-officer assault in the past 12 months.
"Unfortunately prisoners do fight from time to time and they will face discipline when that happens."
Physical searches of individuals at the AMC, inspections of the prison's perimeter and internal intelligence operations continue to locate contraband.
"All of these measures do intercept some contraband but unfortunately some still makes it through. This is an issue in prisons across the country," Mr Rattenbury said.
He said ACT Corrections would continue to lobby YouTube for the footage, which is backed by hip-hop music, to be removed.
Medical records based on the prisoner's injuries have been used to establish when the fight took place.
Opposition corrections spokesman Andrew Wall said the incident was disturbing.
He called for the government to more effectively manage the prison population and for mobile phone blocking technology to be further investigated.
"This goes to the continuing issues that are out at this jail," Mr Wall said.
"They have problems restraining prohibited items from entering into the jail and also a continuing legacy of violence, both between prisoners and prisoners on corrections officers.
"The questions need to be answered: what led to this incident occurring, how did they have a mobile in there to record it and what's being done over and above the current improvements to the prison to make sure that these activities cease?"
Penalties for disciplinary breaches inside the AMC can include withdrawal of privileges including visiting arrangements, financial penalties or separate confinement.
Mr Rattenbury said ACT Corrective Services was not yet in a position to identify which penalty would be handed out but a report into the fight could be made with ACT Policing ahead of possible criminal charges.
