Birmingham is to bid for a share of a £40 million Government fund to meet demand for new housing.

The move is in response to forecasts that, after decades of decline, the number of people living in the city is expected to grow by about 100,000 over the next 20 years.

The city council and Solihull Borough Council are to ask the Office of the Deputy Prime Minister for additional funding to unlock sites for new housing and environmental improvement in the Eastern Birmingham Corridor.

The intention is to provide quality homes for the workforce of tomorrow, which will be attracted to Birmingham by economic growth in the city centre, Eastside, the NEC, Birmingham International Airport and North Solihull.

Other areas linked to housing and employment growth include North-west Birmingham, South-west Birmingham and the A38 Technology Corridor, and the city centre.

The two councils are working with other public agencies to deliver an integrated approach to the development of housing, economic development, transport, health, education and cultural services.

Ending the migration of skilled and affluent residents is a key challenge for Birmingham, according to David Pywell, the city's strategic director of development.

The drain of talent was having a significant effect on the long-term prosperity of the city and its ability to attract and retain inward investment, he added.

Mr Pywell said: "Building in the infrastructure to deliver public services to support and serve this population growth will be critical."

The funding bid to the ODPM was intended to stimulate housing growth and renewal over a wider area and will support the development of growth proposals for Birmingham and the wider city-region, according to Ken Hardeman, the cabinet member for regeneration.

Coun Hardeman (Con Brandwood) added: "Birmingham's growth proposals present an exciting opportunity to attract more people and investment to locate within the city.

"This growth will strengthen Birmingham's role as a global city and help to address persistent issues of deprivation."

Coun John Lines (Con Bartley Green), cabinet member for housing, said: "Improving the quality and choice of housing in Birmingham is critical both to attracting new residents to the city and to enhancing the quality of life for existing citizens."