The Community Education Development Centre is offering Pounds 8,000 to each authority for equipment and staff to run the schemes.
The group, which was set up 15 years ago to encourage community involvement in education, says that some young people are more likely to learn basic skills in youth clubs than in schools.
Six local authorities took part in a pilot project last year, and a further 10 are now being invited to bid for funding.
Dick Jenkinson, CEDC training manager , said: "A youth club is a place where young people meet and feel confident and relaxed.
"They often talk to youth workers about being unemployed and they are very ready to learn new skills that they know will be useful."
The project is being run by the CEDC and the National Literacy Trust and is backed by News International.
Details and application forms are available from: The Community Education Development Centre, Lyng Hall, Blackberry Lane, Coventry CV2 3JS