- Policy document also called for screening of Muslim migrants to stop extremism
- Activist Maajid Nawaz said proposal could lead to 'Muslim concentration camps'
- Gerard Batten denied he was lurching far right amid criticism from Nigel Farage
UKIP has called for Muslim-only jails to stop extremist prisoners converting fellow inmates to their ideology.
A manifesto released for this weekend's UKIP conference in Birmingham also called for the screening of Muslim immigrants to stop extremists arriving in the UK.
But activist Maajid Nawaz said the proposed policy was in 'danger of becoming a first step to Muslim concentration camps'.
The hard-line proposals came as UKIP leader Gerard Batten denied that he was steering the party to the far right, after he confirmed that Tommy Robinson would be allowed to join the party.
Former leader Nigel Farage warned the party faces 'total and utter marginalisation' if it moves to the extremes of politics.
In proposals to crack down on Islamic extremism the UKIP policy document calls for Muslim prisoners who try to convert other inmates to be jailed separately.
The document says: 'Islamic extremism is actively fostered in HM Prisons at state expense.
'Islamic gangs hold sway in some prisons and non-Islamic prisoners are converting for their own protection.
'UKIP would introduce the separation of prisoners or prisons exclusively for Islamic prisoners who promote extremism or try to convert non-Islamic prisoners.'The party also called for a ban on overseas funding for mosques and imams, an end to legal recognition for sharia law and limits on migration from Muslim countries.
'Under a security-based screening policy we restrict any limited migration from Islamic countries to those people we can be sure, as far as possible, do not follow a literalist and extremist interpretation of Islam,' the document says.
'The worst excesses of a literalist interpretation of Islamic doctrine has seen unprecedented acts of terrorism in Britain and across the world.
'This can only be countered with practical measures.'
The plans come amid an escalating feud between current leader Mr Batten and former party chief Mr Farage who called for UKIP to back away from the far right.
A speech by Mr Farage at a gala dinner on Friday during its annual conference was met with only 'polite applause', according to a source who was present.
It is also understood that Mr Farage left the dinner before Mr Batten gave his own speech to the gathered party faithful.
The ex-leader said on Friday he was 'upset' by the prospect of figures such as Tommy Robinson being admitted into the party.
He said UKIP was 'in danger now, unless it changes direction very, very quickly, of total and utter marginalisation'.
Current leader Mr Batten confirmed that he would approve of party membership for Mr Robinson, and said he stood by his descriptions of Islam as a 'death cult' which sanctioned the use of sex slaves.
He hit back at his predecessor on Friday, suggesting he should be 'a little bit more careful about criticising me' when Mr Farage had himself shared platforms with right-wing German party Alternative fur Deutschland.