The city will receive a share of the £1.5 billion Brownfield Fund, which is where derelict sites across the country are transformed into new homes.
The fund also helps people onto the property ladder and boosts local communities.
As a result, it will help boost already existing communities and create new areas of employment.
Stuart Anderson, MP for Wolverhampton Southwest, has been championing for extra investment in regenerating brownfield sites to meet future housing and employment needs while taking pressure off the greenbelt.
Ahead of last year’s spending review he called on the Government to deliver on its commitment to infrastructure in places such as Wolverhampton.
He has welcomed the extra funding, which will also see the West Midlands Combined Authority with £28 million to transform derelict brownfield sites into vibrant places where people will want to live and work.
A further £30 million is being awarded to three combined authorities, including the West Midlands, as part of the programme to deliver 7,800 more homes on the disused land.
The MP said: “As a constituency in which 87% of land is built on, many constituents in Wolverhampton Southwest quite rightly want to see more being done to protect green spaces from being encroached upon.
“I have been campaigning non-stop for extra funding which can deliver more affordable housing while protecting our precious greenbelt.”
With a £15 million investment in the National Brownfield Institute, which is located at the University of Wolverhampton, it will back Mr Anderson’s campaign to protect the green belt from development.
The Institute is pioneering research in the improvement of derelict sites to deliver homes that are fit for future uses.
The investment also builds on record funding for Wolverhampton, now standing at more than £1 billion since 2019.
Anderson explained: “In my submission to the Spending Review last year, I called on the Government to deliver extra funding to level up infrastructure in Wolverhampton and to deliver more affordable homes.
“I was delighted when the Chancellor announced £18 billion to bring 1,500 hectares of brownfield land into use for regeneration.
“I’m thrilled that it has now been announced that Wolverhampton is set to become one of the very first places to benefit from this programme of support.
“This funding will help us to deliver more housing, while alleviating pressure on our greenbelt. I welcome this package of support from the Government, which delivers on our commitment to level up local infrastructure and ensure that everyone can take pride in the place that they call home.”