Under the new proposals, the commissioning, publishing and some of the production of BBC Three’s content would move to Birmingham by 2018.
Additional resources will be put into BBC Three, including new commissioner and assistant commissioner roles based in Birmingham being created to exclusively commission short-form content.
Birmingham will also be the home of a new youth team within BBC News, who will be the main suppliers of the key news content for BBC Three’s Daily Drop.
The BBC’s proposed local news partnerships are also expected to be based in Birmingham alongside the English Regions HQ, moving control of more spend to the city.
The plans would move control of content budgets worth more than £10m to BBC Birmingham, putting it at the heart of producing fresh talent and innovative digital content for young audiences.
To support this, the BBC Academy will launch a new scheme, the Birmingham Production Apprenticeship, for new off-air talent from diverse backgrounds.
Tony Hall, BBC director general, said: “I’ve seen in Birmingham how much of a difference our extra investment in the past couple of years has made - but I’ve also said there was more to do.
"Now we're putting Birmingham at the heart of our innovation with BBC Three, and making it home to a new youth team for BBC News.
“The city's incredible diversity also means it’s the perfect place to lead our work to ensure we reflect the changing face of Britain.
“This package is good news for Birmingham and good news for the BBC.”
Joe Godwin, director of BBC Birmingham, said: “The BBC has a rich history in Birmingham, but also a bright future, today’s announcement builds on the £125m already invested in the city and its position as a centre of excellence for recruitment, training and digital innovation for the BBC.
“Birmingham is a great city with a huge amount of potential. I am really pleased we will be dedicating even more resources, producing even more content, and creating more opportunities for the industry and our audiences in the region.”
Damian Kavanagh, controller of BBC Three, says: “BBC Three's had real success with shows like Thirteen, Cuckoo and Sex In Strange Places, and short-form content like Drugs Map Of Britain and Life And Death Row: Love Triangle all cutting through.
“With this additional resource, and being sited with BBC News, it means we can do so much more for young people.”