Information and advice services along with accessibility will be the improvement priorities.
The education watchdog's report criticised inconsistencies in youth work practice and achievement.
Although it praised work to further racial harmony, it said the service was too focused on unchallenging recreational activities.
"We will develop an improvement plan," said Elaine Fulton, Peterborough's assistant director for education, partnership and community development.
www.ofsted.gov.uk.
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