Young offenders will face community sanctions instead of detention as part of an initiative aimed at making detention an option of last resort for judges.
The measure is to be introduced on a pilot basis. It will allow for a range of sanctions, including an order assigning a child to the care of a suitable adult or mentor, or a day centre order to divert the child to education or training services.
The sanctions are provided for under the Children's Act (2001).
Separately, the Minister of State with responsibility for Children, Mr Brian Lenihan, has confirmed that the Government is considering establishing a UK-style Youth Justice Agency.
The agency would co-ordinate the work of a number of bodies involved in the juvenile justice system, including the probation services, education and welfare boards and health boards.
The UK's Youth Justice Agency's work has led to a dramatic reduction in the time between bringing an offender before the courts and the disposal of the offence.
Mr Lenihan said that community sanctions could play a significant role in helping children break the cycle of offending.
"That is under consideration and we're looking at various models. The agency in the UK managed to make the system more efficient and they managed to do it without allocating additional social workers."
Mr Lenihan and the Minister for Justice, Mr McDowell, have met with a group responsible for establishing a Youth Justice Agency scheme in the greater Manchester area.
Experts on the juvenile justice system, such as UCC law lecturer Dr Ursula Kilkelly, have been calling for a similar system for some time.
