The decision was annouced in a press release shortly after the youth wing elected Jessica Ohlson as its new leader.
"We see the youth wing's decision to elect Jessica Ohlson as its new leader as a clear sign that the youth wing wants the conflict that's been going on for the past few years between its members and the mother party to continue," the party board writes.
The Sweden Democrats' executive board will now form a new youth organisation with the same name as the previous youth wing. According to the party's by-laws, however, the Sweden Democrats might not be able to break off from its youth wing without letting other party members vote on the matter at a party congress.
Ohlson represents a group within the Sweden Democrats' youth wing that wants to take the party in a more nationalistic direction, which the party board of the Sweden Democrats is opposed to.
Prior to the leadership election, both the leader of the mother party, Jimmie Åkesson, and party secretary Richard Jomshof warned the youth wing that the mother party might have to cut the ties should Ohlson be elected as its new leader.
"If Ohlsson is elected we will call her to a meeting to discuss how our organisations can go our separate ways in a structured way and without making a mess," Jomshof said in an interview with SD-Kuriren, the party's own magazine.
In an interview shortly after she was elected, Ohlson said that the mother party simply had to "come to terms with the decision".