The guarantee, which was first announced in last year's Budget, promises a job or training to every 18- to 24-year-old who has been out of work for six months or more.
The initiative, initially due to run until next year, has cost less than expected, so the money saved so far will be used to fund the extension of the programme.
Darling told Parliament: "No-one under 24 will need to be unemployed for more than six months without being offered a job or training."
The guarantee includes:
From April 2010, young people who have been claiming Jobseeker's Allowance for 10 months will be required to take up one of the offers from the guarantee, or risk losing their benefits.
Those who turn down a "suitable" offer once could face losing two weeks' benefit. They could lose four weeks' benefit for a second refusal and 26 weeks' benefits for a third refusal.
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