The scheme is being established as an alternative for young people who are either remanded in custody or sent to Kingsmere Remand Unit.
Living with a foster carer will give teenagers the chance to demonstrate good behaviour before appearing in court. Taking the opportunity could lead to lighter sentencing if they are found guilty.
Susanna McCorry, cabinet member for social care and health at Birmingham City Council, said: "This will offer an opportunity for those teenagers who may be offenders to take a very close look at their lives and see the potential for change."
Kingsmere can accommodate up to eight 13- to 16-year-old boys. No facility exists for girls, many of whom have been forced to travel to remand units outside the West Midlands or be imprisoned while awaiting trial.
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