The government has allocated an additional £12.5 million to projects helping deter vulnerable people from extremism.
The money will be distributed among police-led multi-agency projects, prisons, young people who have already had brushes with the law and grassroots projects in areas where radicalisation has already occurred.
Home secretary Jacqui Smith says the government is keen to continue the fight against terrorism by initiating such preventive measures, which she hopes will stop many potential radicals from polarising their views.
"A key element of our strategy aims to stop people getting involved in extremist violence," she said.
"Only by working together and building on our shared values can we prevent terrorism in the first place. We are investing at local level to build resilient communities, which are equipped to confront violent extremism and support the most vulnerable individuals."
Guidance published today by the government will set out the ways in which local authorities and their partners can use the funds.