The functions of the body, which was established by the Labour government in 1998, will be transferred to the Ministry of Justice over a 12- to 18-month period.
The YJB oversees the youth justice system in England and Wales, working to prevent offending and re-offending by children and young people under the age of 18. It also commissions places in custody.
YJB chair Frances Done described the decision as "disappointing" and paid tribute to the work of the board over the last decade.
"The Youth Justice Board has profoundly changed the landscape of youth justice," she said. "We have provided leadership to the youth justice system and overseen real progress, over the last few years, in significantly reducing the numbers of first-time entrants to the youth justice system, reducing the frequency of re-offending and dramatically reducing the numbers of young people in custody - and at the same time making custody safer and more effective.
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