The capital funding builds on a previous investment of 1m two years ago, which helped to improve facilities for young people, with a wider range of sports, arts and outdoor education programmes being delivered.
The new funding has been allocated by the borough's leisure services department. The youth services, which had been part of leisure services in Sandwell for 12 years, moved back under education in May.
David Wright, Sandwell's principal youth officer, said: "Sandwell has got serious deprivation problems. But the council recognised that although the area got funding for regeneration, there had been under-investment in young people. Specific facilities for older teenagers were identified as a priority."
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