A NOTORIOUS pedophile will be moved from his taxpayer-funded house in the grounds of a Victorian prison because of fears he will prey on children attending the prison Christmas party.

Brian Keith Jones, dubbed Mr Baldy because he shaved the heads of his child victims, lives in a residence in the grounds of Ararat Prison, in central Victoria.

The 58-year-old was released from jail in July after serving 12 years for child sex offences.

Corrections Victoria was forced to move Jones to Ararat after his Melbourne address was discovered by the media. The Herald Sun newspaper said prison officers were not prepared to hold their family Christmas party, where up to 30 children would be attending, if Jones was not moved from the house.