A new park and ride facility will be built next to Longbridge railway station after a land deal was agreed with the West Midlands Combined Authority.
Property group St Modwen, which is carrying out a £1 billion regeneration of the south Birmingham town, has sold a 0.2-acre plot of land to the authority.
A planning application was recently submitted to Birmingham City Council for the project which will see a new five-level car park with 528 spaces developed, subject to consent.
This will be built on the existing surface level car park, which is free and has 102 spaces, currently in operation there.
Chris Newsome, development director at St Modwen, said: "The strategic location of this site will benefit people who live, work and enjoy their leisure time in Longbridge.
"The sale to the combined authority is further confirmation of our commitment to the regeneration of Longbridge even if we are not directly involved in a project."
Duncan Fry, senior project manager at the combined authority, added: "Longbridge is one of the busiest stations on our network and the park and ride facility is hugely popular.
"This high demand means it's often full before the end of the morning rush hour which is why we have been looking at ways to expand the site.
"With the purchase of this land we will soon unveil further details of our proposed extension and all the extra convenience and connectivity it will bring for passengers."
St Modwen has been regenerating the site of the former MG Rover factories in the wake of the company's collapse in 2005.
Among the projects already completed are a new Sainsbury's, the Midlands' largest Marks & Spencer store and a new Bournville College.