For the next three years, the Graduates Yorkshire Internship Programme will be funded by the regional development agency Yorkshire Forward, it has been announced.
The project concentrates on helping Yorkshire graduates become more employable by providing them paid work experience, coaching and mentoring. The internships cover a wide range of sectors - including IT, construction and marketing.
Yorkshire Forward agreed to help the programme after it accomplished its target of filling 60 paid-for placements in the region.
With the help of this, an additional 650 graduates will be given the opportunity to benefit from the internships being offered by the region's businesses.
The programme is also helping companies in the region by allowing them access to the graduate's skills for between three and 12 months.
Martin Edmondson, Graduates Yorkshire chief executive, said: "Graduates don't stop learning the moment they leave university. Internships give vital experience in the workplace that you just can't get when you are studying.
"The jobs market is tough for graduates at the moment and, because we only offer paid for internships, it means graduates can take advantage of the scheme without having to worry about how they can support themselves financially during their placement."