Cheshire West and Chester Council members voted the measure through to try and raise more external funding for its young people service, which includes information, advice and guidance services as well as youth work.
Councillors said the decision followed a year-long review of local provision, which found more investment was needed for the council to maintain the level of frontline services it currently provides.
The council’s executive member for education and children Mark Stocks said keeping the work in-house limited funding opportunities because the council was unable to attract grants or other external funding.
Stocks also said the option of creating an arms-length service to deliver youth work was too costly.
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