In a consultation paper published last week, the Assembly Government said many of the buildings used by the service are "in need of repair and renovation", which has a knock-on effect on quality of provision.
The document asks whether the principle of voluntary participation should be put aside to allow the service to do more work with young people in custody, those involved in offending, or in formal education settings.
Veronica Wilson, chief executive of the Council for Wales of Voluntary Youth Services, said the strategy should recognise the importance of the youth sector in providing universal services.
The consultation deadline is 26 January; the finished strategy is due to be published in March.
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