Deradicalisation programs, similar to those in adult prisons, will be rolled out in the NSW juvenile justice system for offenders identified as being at risk.
In response to the spike in the number of NSW youths jailed on terrorism offences, the NSW government will create a "countering violent extremism unit" inside the juvenile justice system to try and deradicalise young offenders.
The government says it's also open to toughening laws so high-risk young prisoners can be kept locked up for longer if necessary.
There were no juveniles locked up for terror-related offences in 2015 but today there are five and law enforcement agencies predict "the number will continue to increase".
Under the new policy, inmates deemed a risk will be given a "national security interest" designation, which means they'll be subject to more screening with phone calls, mail and visitors restricted.
At present only the five juveniles held on terror-related charges fall into that category.
"This has tragedy written all over it in every aspect," NSW Premier Gladys Berejiklian told reporters in Sydney on Wednesday.
Government attempts to win over at-risk offenders have previously come under fire after it was reported a teenager charged with plotting a terror attack on Anzac Day in Sydney in 2016 had been involved in a deradicalisation program
NSW Labor leader Luke Foley criticised the coalition plan for being too soft and called for a high-risk unit to segregate the "maddest and baddest inmates" in juvenile justice centres from the wider population of detained youth.
