The plans are part of a new £1bn strategy which aims to get more young people involved in sport at grassroots level - a legacy pledge in the UK's 2012 Olympic bid.
As part of the five year youth sport strategy, Sport England will help 2,000 local football clubs move into secondary schools, with expert coaches providing sessions that aim to strengthen links between schools and grassroots clubs.
In total, 4,000 schools will be offered a community sport club on their site, with respective national governing bodies (NGBs) committing 1,300 rugby union clubs, 1,250 cricket clubs, 1,000 rugby league and 1,000 tennis clubs to the scheme.
Around £450 million of the funding will go directly to NGBs between 2013 and 2017 for their whole sport plans, with funding allocated on a new "payment-by-results" basis to ensure that targets are met.
County sports partnerships will support NGBs, foster local links and help transition young people into clubs, with a particular focus on the 14- to 25-year-old age bracket.
The government hopes playing sport will become a lifelong habit for more people and a regular choice for the majority.
A further £10m will be made available to open up school sport facilities for local community use. All secondary schools who wish to do this will be supported by Sport England, with at least one third of these receiving additional funding to make it happen.
“Changing the sporting behaviour of a generation is a major challenge which has not been achieved by any other Olympic host nation," said Sport England Chief Executive Jennie Price.
“With a new focus on young people and an even tougher, government-backed, regime of payment by results, Sport England and its partners are determined to deliver.”
FA General Secretary, Alex Horne, said: “Football welcomes the Sport England strategy and the increased focus on youth.
"A priority will be taking 2,000 local football clubs into secondary schools across the country, offering expert coaching and creating the strong ties that will help young people make the move from school sport to community sport.”
Funding boost for School Games programme
The 2012 Olympic and Paralympic legacy was given a further boost with news of an extra £32m of funding for the School Games programme - an initiative in which school children in England compete at intra-school, inter-school, county and national level.
New money pledged from the Department of Health (£14m), Sainsbury's (£10m) and Sport England (£8m) means the initiative will be extended from two to four years, up to 2015, while adidas will provide sports kit to the 1,600 athletes reaching the national finals at the Olympic stadium and other Olympic venues.
Culture Secretary Jeremy Hunt said: “We are absolutely determined to leave a real and lasting legacy for young people from London’s Olympic and Paralympic Games, and the Sainsbury’s School Games will help do just that.
"The fantastic funding package shows the commitment to completely transform competitive sport in schools. I want to thank Sainsbury’s and adidas for their generosity in helping to secure the future of the School Games beyond 2012.”
Check out the new youth sport strategy - Creating a sporting habit for life (pdf).
Find out more about the School Games programme on the Sport England website.