The programme will see 18- to 25-year-olds travel overseas to work on projects in the developing world.
Volunteers will spend 10 weeks abroad. On their return they will take part in a residential weekend with other volunteers, and road shows raising awareness of global poverty.
Development secretary Douglas Alexander said: "By living and working with people from very different backgrounds, facing very different challenges, they will learn new skills and help unlock the potential within them to become better global citizens.
"And on their return they'll be applying what they've learned to activities in their own local communities."
The Department for International Development is backing the scheme, which will be run in partnership by Christian Aid, Islamic Relief, and volunteering organisation Bunac.
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