The project, called Anti-Racism Kirklees or ARK, will work with predominantly white young males and disadvantaged young people believed to be involved in racist behaviour.
ARK will work in Dewsbury and Batley, West Yorkshire to impact thinking and behaviour and improve life opportunities.
Ivan York, head of Kirklees young people's services, said: "We want to work with young people before they've been indoctrinated. We want to help people make informed choices." The project, which will have a youth work project co-ordinator by May, will run for three years.
Kirklees Racial Equality Council is the lead agency in the project, which also involves Kirklees Metropolitan Council, Voluntary Action Kirklees and the University of Huddersfield.
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