The new draft guidance will help local authorities single out children at risk of sexual exploitation and act against people abusing them. It will update the guidance on safeguarding children involved in prostitution, which was issued in 2000.
The government wants everyone working with children at risk of sexual exploitation to give their views on the guidance.
Home Office minister Vernon Coaker said: "Protecting and supporting the victims of child sexual exploitation is crucial, but this has to happen hand in hand with bringing perpetrators to justice."
Penny Nicholls, director of children and young people at The Children's Society, added: "Our experience has shown that when agencies work together they can offer greater support and protection to this vulnerable group."
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