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Work will start on site next week to deliver the scheme which will see improvements made at the Black Country Route (BCR)/Coseley Road roundabout and at the Broad Lanes/Ladymoor Road/Highfields Road junction.
The investment is being made to keep pace with the economic regeneration of the area as a place to live, work, invest and visit.
Works are expected to last for approximately 12 months, with traffic restrictions in place throughout.
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets, said: "The multi million pound Bilston Urban Village project is a hugely important part of Wolverhampton's regeneration plans.
"Naturally, as the area grows economically, the transport infrastructure needs to expand with it - making these latest highway improvements vital.
"We apologise in advance for any inconvenience these works may cause. Every effort is being made to keep disruption to a minimum.
"The urban village will bring hundreds of new homes, new jobs and more investment. It demonstrates our commitment to Bilston and ensures it will continue to be a thriving area."
The BCR/Coseley Road roundabout is one of the busiest in Wolverhampton and the works will deliver new and wider lanes to reduce traffic congestion.
The majority of the works will be carried out during off-peak hours (9.30am to 3.30pm).
There will be lane restrictions affecting the BCR and Coseley Road, and a temporary reduction in the speed limit to 30mph for the duration of the works.
A new mini roundabout will be built at the Broad Lanes/Ladymoor Road/Highfields Road junction to enhance the traffic flow and enable an increase in vehicle capacity, as well as better facilities for pedestrians and cyclists.
A short section of Highfields Road will be closed for approximately 6 months from 1 February, in order for a further mini roundabout to be constructed at the new entrance to the Bilston Urban Village, off Highfields Road.
Two way temporary traffic lights will be in place on Broad Lanes/Ladymoor Road at times and diversionary routes will be in place for those affected by the Highfields Road closure.
The Bilston Urban Village site will provide developers with the opportunity to build up to 400 new houses in a quality environment, together with new employment areas and leisure facilities.
The first phase of Bilston Urban Village saw the building of the Bert Williams Leisure Centre and South Wolverhampton and Bilston Academy - improving health and increasing opportunities.
- released: Friday 8 January, 2016