The helpline will now be run by essentiagroup, the company behind the Home Office's drug advice helpline for young people, Frank.
Ufi won the original deal to operate Connexions Direct in 2001, but the Department for Education and Skills decided to change provider following a competitive tender. Ufi declined to comment on the decision.
Essentiagroup, of Glasgow, will run the helpline from 1 July, but the service provided will not change. The call centre will still be based in Newcastle-upon-Tyne and the company plans to boost staff levels.
Catherine Kelly, head of human resources and training at essentiagroup, said: "We are looking to increase staff numbers significantly, but it is too early to go into any specifics."
However, the company has placed an advertisement on its web site for an additional 40 advisers to operate Connexions Direct's phone lines.
Essentiagroup has committed to giving young people a greater role in the service's development, starting later this year, but no details have yet been released. It is also constructing a referral database to make it easier for Connexions Direct advisers to access information about local Connexions partnerships.
Earlier this year, a 28,000 evaluation of the helpline was abandoned following suspicions from researchers that less favourable views about the service were being hidden from them (YPN, 10-16 March, p4).
Connexions Direct is aimed at 13- to 19-year-olds who would prefer not to discuss problems face-to-face.
