Town halls should consider mapping their areas religion by religion to help combat Muslim extremism, the Government suggested.
Guidance to local councils suggested the move as part of a wide-ranging package to identify and challenge Islamists, including a new national "de-radicalisation" programme.
The scheme will seek to reverse the process of indoctrination carried out by al Qaida-related extremists, using unnamed "specialised techniques".
The document also said councils should make sure they have systems to remove funding or other support from inappropriate groups.
The guidelines said: "A deeper understanding of local communities should be developed to help inform and focus the programme of action - this may include mapping denominational backgrounds and demographic and socio-economic factors."
Local groups that challenge the messages of violent extremists should be supported, it went on.
But councils should be prepared to ask police to vet anyone involved in projects that receive government anti-radicalisation funding, it urged.
If a group is found to be promoting violent extremism, local agencies and the police should consider disrupting or removing funding, and deny access to public facilities, the document added.
The Home Office announced an extra £12.5 million will be available this year specifically to help institutions or individuals which may be vulnerable to radicalisation.
Home Secretary Jacqui Smith said: "We are investing at local level to build resilient communities, which are equipped to confront violent extremism and support the most vulnerable individuals."
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