The body had been earmarked to be scrapped under the Public Bodies Bill as part of a government drive to reduce the number of quangos.
It is understood the government withdrew the clause to abolish the YJB from the bill prior to a scheduled debate on the matter in the House of Lords.
Announcing the U-turn in parliament, justice minster Lord McNally said the government realised "that the future of the Youth Justice Board is an emotive issue".
He said he accepted that, in both parliament and in a public consultation, there had been "considerable opposition".
The House of Lords had previously voted against abolition, only for MPs in the Commons to reinstate the clause.
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