Wales' group is
Wales
France
Romania
Bosnia
Malta
Matches will be played between June 2007 and September 2008.
No fixtures have been finalised yet.
This is a new intake of lads, and they have shown themselves to be a receptive, willing bunch," said boss Brian Flynn from the draw in Stockholm.
"They have only played one match together so far and that was last week in Northern Ireland, and they produced a very good 4-0 win. That was very encouraging.
"Looking at some of the other groups, it is not too bad.
"France are obviously the favourites to win the group, but I feel we have a decent chance against Romania and Bosnia, while we beat Malta in a friendly last season.
"I expect to lose some of the lads to the senior squad during the next two years of the qualifying competition, but that is to be expected and the real object of what we do at this level.
"I will look forward, in particular, to the games with France. They have a wonderful reputation for producing top youngsters and we can only learn from playing them.
"And the tie in Wales will certainly be an attractive one as far as pulling in a crowd is concerned."