The region's coffers are set for a £147 million boost with borrowing on the back of Birmingham's enterprise zone more than doubling.
An agreement has been struck to expand the City Centre Enterprise Zone Investment Plan from £128 million to £275 million on the back of rising demand and confidence in the city.
The investment plan has been approved by the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) and is expected to get the green light from Birmingham City Council's cabinet on Monday.
The package of funding will help the enterprise zone deliver over 40,000 jobs, 1.4 million square metres of business and commercial floorspace and will add £2 billion a year to the local economy.
This funding, along with the recent announcement of the Birmingham Curzon Regeneration Company, is expected to drive major interest in the city centre and drive growth.
Andy Street, chairman of the GBSLEP, said: "The economic prospects of the City Centre Enterprise Zone will enable the Greater Birmingham area to drive forward the nation's economic recovery.
"The investment plan is a key piece of the jigsaw that will allow the LEP to unlock the potential of some of our key projects over the coming years.
"The regeneration that will follow will provide a huge boost to the local economy, creating jobs, living space, office accommodation and infrastructure. It is a clear signal of Greater Birmingham's ambition."
The increase in funding reflects an increase in confidence in the city centre, with the enterprise zone accounting for 26 different parts within the city core.
The initial £128 million was raised after the zone was launched by the LEP in 2011.
However, the LEP's £275 million investment plan will accelerate the delivery of new development and infrastructure projects, including funding into the regions two HS2 stations, as well as areas like business support.
The £275 million package of investment includes:
* The original £128 million allocated investment to kick-start a range of projects within the zone.
* A further £62 million to further accelerate major city centre development schemes.
* An initial £30 million to for the regeneration company set up to deliver regeneration around Birmingham Curzon HS2 Station.
* The creation of a £40 million fund to support the delivery of LEP priorities across the Great Birmingham area including the HS2 Interchange near the NEC.
* An expanded timeframe taking the investment plan to 2023.
City council leader Sir Albert Bore said: "The enterprise zone is already delivering benefits to businesses and the citizens of Birmingham with new development and infrastructure in the city centre.
"This funding package of £275 million, including support for Birmingham Curzon, will allow us to continue to deliver the positive transformation of the city centre and to attract further inward investment."
Waheed Nazir, director of planning and regeneration at Birmingham City Council, said: "This funding announcement shows that the city and LEP are committed to making the enterprise zone a real success story.
"Significant progress has already been made since the launch of the enterprise zone and the extension of the investment plan reflects the confidence in Birmingham. Coupled with the recent announcements on HS2, the city is gearing up to drive forward the growth agenda."
WHERE ENTERPRISE ZONE FUNDS ARE GOING:
Paradise Circus phases one, two and three – £87.8m
Direct investment into other 25 sites – £15m
New wholesale markets – £10m
Southern Gateway site remediation – £35.5m
Metro extension and Centenary Square – £25m
Connecting economic opportunities – £17.7m
LEP Investment Fund – £20m
Birmingham Curzon HS2 Station – £30m
Interchange HS2 Station – £20m