The review, set out in a memorandum of understanding between the Ministry of Justice (MoJ), London Councils and the Mayor's Office for Policing and Crime (Mopac), will focus on the use of custody for under-18s across London - covering both police custody and the youth secure estate.
In January 2018 there were 237 young offenders from London in custody, but Justice Secretary David Gauke said reoffending rates are higher in the capital than other parts of the country.
Meanwhile, almost half (118) of young people from London in custody were held in establishments outside the city, a situation that undermines efforts to stop reoffending according to the memorandum.
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