The initiative is led by Jagtar Dhanda, director of policy at b:RAP (formerly the Birmingham Race Action Partnership).
Dhanda said: "This is about interfaith and intercommunity conflict. The Lozells riots last year acted as a catalyst."
The project has received 250,000 from the Big Lottery Fund for three years and will launch in November. It aims to engage 14- to 19-year-olds, with a group of 10 to 12 young people forming a steering committee.
Dhanda said: "The project will help young people to recognise racism and discrimination, collaborate with others, and engage with the political process. We will be building on their experiences, such as Islamophobia, but the young people will decide their priorities. The young people will be involved in delivering projects and testing interventions."
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