The Prison and Probation Services will merge, forming the National Offender Management Service, which will manage adult offenders.
Sir Charles Pollard, acting chair of the Youth Justice Board, said: "Everyone in the youth justice system can take great comfort from the fact that their work has been recognised."
The chief executive of the service will oversee the Youth Justice Board.
This role was previously held by the commissioner for correctional services and is expected to have no impact on the board's work.
Separately, Professor Rod Morgan, chief executive of HM Inspectorate of Probation, has emerged as a frontrunner to become the new chair of the Youth Justice Board. Baroness Blackstone is also understood to have been interviewed.
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