Business leaders in Lichfield and Tamworth have agreed to join the prospective Birmingham and Solihull Local Enterprise Partnership.
The LEP is one of six similar organisations emerging as replacements for Advantage West Midlands, the regional development agency.
Earlier this month Birmingham’s plan to set up a region-wide Super LEP collapsed when the Black Country councils rejected the idea.
They intend to go it alone with their own LEP, subject to government approval.
Neil Lancaster, president of Lichfield and Tamworth Chamber of Commerce, said it made sense to link up with Birmingham as it would lead to more opportunities for job creation and inward investment.
Mr Lancaster said: “We know we have much to offer and are confident in our ability to compete with the best in the world.
“By partnering with Birmingham we will be part of a compelling team, able to punch our combined weight as we compete in global markets.
“There are cross-cutting activities in topics like skills, inward investment, innovation etc. where a number of LEPs will want to work together.
“We need to remember the real competition lies in international markets and not between local LEPs.”
He added that for LEPs to succeed, it was important to have a good working relationship with the local authorities in the region.
He has written to Lichfield District Council, Tamworth Borough Council and Staffordshire County Council advising them of plans to establish a LEP with Birmingham.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce and Industry said: “This is a significant decision and we will do all we can to help Lichfield and Tamworth come on board the proposed LEP.
“In terms of economic geography, it makes sense for them to join up with us, and it will give added value to all of the chamber members involved.”