Cash- strapped Midland authorities could be in line for millions of pounds in extra funding after John Prescott launched a review of council finances.
The funding gap between shire and inner-city schools has continued to grow, despite a series of inflation-busting increases in Treasury grants.
But Mr Prescott, the Deputy Prime Minister, yesterday announced a full review of the way resources are shared out, just three years after the present system was introduced.
Mike Foster (Lab), MP for Worcester, said: "Some of the options being considered would mean our schools gained significantly."
At the moment, Worcestershire secondary schools receive £3,012 per pupil, but secondaries in Birmingham receive £3,534 per pupil.
Other shire authorities, including Staffordshire and Shropshire, also receive less funding than Birmingham.
But some rural areas in the south of England, such as Kent or Hertfordshire, receive grants in line with big cities.
Councils and headteachers have launched a long-running campaign for a fairer deal.
The Government plans to tell councils how much they will get three years in advance.
Local Government Minister Phil Woolas said: "The move to three-year settlements will provide greater financial certainty and stability for local government, council tax payers, businesses and other local partners. With the introduction of three-year settlements for local government, it is an opportune time to review the basis on which we distribute formula grants to local authorities in England."
A particular bone of contention has been a scheme called the Area Cost Adjustment, which provides extra money to some councils to help them recruit staff, such as teachers.
Birmingham currently qualifies, while Worcestershire does not. But Worcestershire MPs claim this simply means their teachers take jobs in Birmingham, where the pay is higher, and commute.
Mr Foster said: "The good news is that of five options being considered for the Area Cost Adjustment in this new consultation, Worcestershire benefits from four of them."
Peter Luff ( Con Mid Worcestershire) called for wholesale changes to the funding system.
He said: "Worcestershire fails to get a fair share of funding for all essential services."