The change is part of a youth participation drive by the island's department of education and follows several pilot schemes.
Mike Clague, head of the island's youth and community service, said: "Since the 1970s, we've had a system where projects were run by adult management committees who worked with nominal input from young people."
He added: "We felt that had not been particularly successful in involving young people and wanted to give young people a genuine ability to influence the running of projects."
Under the plan, the island's 30 statutory youth projects will establish a management system led by young people, the first of which is expected to be in operation by July.
"We are talking to all the clubs and projects about how the new committees will work," said Clague. "But we are treating each club differently: we don't want to force a single model on every project."
As well as placing young people in charge of youth projects, the Isle of Man Government is also establishing youth forums to increase young people's involvement.
"The forums will act as representatives for young people in each of the six towns on the island," said Clague. "They will look at youth issues in the area and advise the Department of Education on the views of young people. We are currently in the process of setting one up in Douglas and are also looking to set up forums in the other five towns."
