Ensuring young people are safe in the borough, which has a high rate of violent crime, including murder, is a key factor in the move, the council said.
It is working closely with police, health, schools and young people through the Newham Youth Safety Board partnership to improve its youth provision, it added.
The new youth service involves deploying detached youth workers to support young people in the community as well as doubling the number of “youth zones” from four to eight. These zones provide drop-in youth club activities across the borough.
The investment in youth provision in Newham comes amid widespread youth services funding cuts across England.
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