The decision means that 4,000 men and women will be called up for service from 1 January 2018, a defence ministry spokeswoman told the BBC.
They will be selected from about 13,000 young people born in 1999, who will be asked to undergo a military assessment, Marinette Nyh Radebo said.
Non-aligned Sweden is worried about Russia’s Baltic military drills.
In September, a Swedish garrison was restored to Gotland, a big island lying between the Swedish mainland and the three ex-Soviet Baltic states.
“The Russian illegal annexation of Crimea [in 2014], the conflict in Ukraine and the increased military activity in our neighbourhood are some of the reasons,” she said.