The government is expected to create a second housing department headquarters in Wolverhampton - its first ministerial base outside London.
Communities secretary Robert Jenrick MP believes it will create at least 500 jobs in the Ministry of Housing, Communities and Local Government department by 2025.
According to him the move was "backing our great smaller cities, some of which have been neglected for too long".
The location of the department will be announced later this year. Recruitment is already under way, with 40 roles already moved to the region in the past 12 months.
Robert Jenrick MP said, "With a dual headquarters in Wolverhampton my department will not only change where we work but how we work, signalling the end of the 'Whitehall knows best' approach.
"In choosing the city of Wolverhampton we are also backing our great smaller cities, some of which have been neglected for too long. We want to raise their stature, encourage civic pride and commercial success."
