Wales Under 20 head coach Phil Davies said: "Firstly, we are delighted to be competing at the Junior World Championship in Argentina next June and the prospect of facing the current world champions, New Zealand in our pool, along with Fiji and Samoa who are both notoriously physical, yet very skilful sides, is a very exciting one.
"With the draw now in place, it gives us a terrific focus for the forthcoming season with selection for the squad very much up for grabs."
Following the most successful IRB Junior World Championship to date in Japan earlier this year, which was screened live by 16 broadcasters to 135countries and saw crowds exceed 100,000, the annual showpiece development competition will be played in the Litoral region from Friday, June 5 to Sunday, June 20.
"The IRB Junior World Championship is essential for the development of elite international players and officials and I have no doubt the UAR will host a colourful, exciting and passionate event," said IRBChairman Bernard Lapasset.
"We are looking forward to an intense festival feel to the Junior World Championships in Argentina with 30 matches concentrated in one region. The reduction to 12 teams will create a more competitive tournament from round one," said Tournament Manager Philippe Bourdarias, in Buenos Aires for the announcement.
The new format sees 12 teams in three Pools:
Pool A: New Zealand (holders), Wales, Samoa and Fiji
Pool B: England, France, Ireland and Argentina
Pool C: South Africa, Australia, Scotland and Tonga