The Ministry of Housing, Communities and Local Government (MHCLG) is to open a second headquarters in the Black Country as part of plans to shift civil servants away from the capital.
MHCLG's Wolverhampton base will be the Government's first English ministerial department based outside of London and will create 300 new roles in the region.
Wolverhampton City Council leader, Cllr Ian Brookfield, said: ‘This is a huge vote of confidence in the city of Wolverhampton and we are delighted to have been chosen to host this historic move away from Whitehall.
'The kudos of being the first place outside of Whitehall to host a government department will create a real buzz and interest in our city, attracting further investment.
'When the idea of MHCLG moving out of London was first discussed last year, the council, local MPs and other stakeholders lobbied hard to make it a reality and that has paid off.'
The move is part of plans to have at least 800 civil servant roles outside of London by 2030, including half of the most senior positions.
Local government secretary Robert Jenrick said: 'With a dual headquarters in Wolverhampton my department will not only change where we work but how we work, signalling the end of the Whitehall knows best approach.
'This Government knows that by having more local voices at the heart of our policy development and delivery we will support our communities more effectively, and we will continue to develop greater career options in government outside of London.'