The investment will build on the £6m Youth Media Fund, which was announced in 2006 and is managed by the Mediabox consortium.
The aim of the investment is to give young people experience of creative industries, such as film making, online and print news, and computer game design.
The government hopes this will encourage more young people from disadvantaged backgrounds to find employment in these areas.
The Youth Media Fund is in its second and final year, which runs until the end of March. So far it has funded 117 projects, reaching around 6000 13- to 19-year-olds in England.
Mediabox will allocate £2m of the replacement fund in 2008-09. A tendering process will be conducted to find an agency to manage the allocation of the remaining £7m from 2009-11.
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