Dudley Council is working with Dudley College of Technology on the bid to the government’s Levelling Up Fund which would see a new education building built.
The plans also include new cycling and pedestrian links into the town centre as well as expanding the college’s Skills Shop at the Merry Hill Centre.
As part of the bid, there are also plans for a bridge to create a pedestrian and cycling link between Venture Way and High Street to Merry Hill.
If the bid is successful, the new 3,000sq m college building will be built at the rear of the college’s Inspired building in Venture Way and will boost the town’s education quarter.
Councillor Simon Phipps, cabinet member for regeneration and enterprise, said: "This is such an exciting development and will be a major boost to education and skills for young people.
"As part of our Child Friendly Dudley commitment, we are ensuring young people have the very best start in life, have access to first-class education facilities and get the best training facilities for long and successful careers.
"Along with the improved pedestrian and cycling facilities, the future looks very bright for people living, working, visiting and studying in Brierley Hill."
Councillor Phipps added: "I’m pleased we have been able to submit a bid for this round rather than waiting for a future opportunity and [it] allows us to work with Dudley College which has built so much positive momentum in recent times with its expansion in Dudley. We need to seize this opportunity now and strike while the iron is hot."
The Brierley Hill bid is supported by Dudley South MP Mike Wood, which is an essential part of the submission to the Government.
Mr Wood said: "This Levelling Up bid is about establishing Dudley South as a centre for the next generation of vehicle technologies so that it becomes the place for businesses to invest in high-paying jobs.
"As well as the new Vehicle Technology Centre, the plan will help to make Brierley Hill a nicer place to shop and to work, joining up different parts of the town centre."
If the bid is successful the new college will create hundreds of course places on the future of sustainable transport, while the improved pedestrian and cycling links aim to bring more people into the town.