The local Connexions service, Wandsworth Youth Offending Team (YOT) and the council's youth services team will become part of a single unit controlled by the borough council's leisure department.
Roger Appleton, head of policy at Wandsworth Council, said: "The main driver is that more and more of these serv-ices are involved with the same young people. By bringing the services together, we can focus more resources on the young people and ensure they don't fall through the cracks."
Initially, the new unit, which will have an annual budget of 6.5m, will be co-managed by the existing heads of the three services.
The overhaul will also see a greater emphasis put on work with disadvantaged young people. Despite the shift in focus, the council has ruled out the closure of any youth clubs.
The move will also give Wandsworth Youth Offending team greater financial security.
Steve Mayner, head of public affairs at Wandsworth, said: "It is very difficult for the YOT to plan ahead as its funding is given by the Youth Justice Board on a year-by-year basis. The new structure will provide it with a longer-term financial footing,"
Wandsworth is also preparing to open a high street chain of youth cafes, offering a meeting place and access to local services. The first sites for the cafes are in Tooting and Roehampton, and will open in January.
"The Base cafes are a new approach to providing drop-in services and the goal is to make life easier for young people," said Mayner. "We've been careful to ensure it is a place young people will want to hang out in."