Seventy-seven councils, including the 10 areas involved in the Tackling Knives Action Programme, will receive £25,000 each to provide activities.
Children's minister Beverley Hughes said: "Friday and Saturday nights are a hotspot time for antisocial behaviour, particularly in disadvantaged areas. That's why we are investing additional funds to ensure young people have access to positive activities at these times."
Jeremy Glover, chief executive of Bolton Lads & Girls Club, said: "This is great news. Youth centres will be open when young people want them."
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