The School Streets Initiative will see roads turned into pedestrian and cycle zones outside the schools during peak times.
The three schools being put forward are Peters Hill Primary School in Brierley Hill, Brook Primary School in Wordsley and Sledmere Primary School in Dudley.
Funding for the scheme – which works out at about £36,000 per school – will come from Transport for West Midlands.
Councillor Shaz Saleem, Dudley Council's cabinet member for highways and public realm, said: "School Street schemes have been hugely successful in other parts of the country in reducing air pollution, improving lifestyles by encouraging people to walk and reducing the risk of accidents on the roads outside schools.
"We have chosen these three schools by taking into account a number of factors including the location of the school, known parking issues, the type of road it is on and the level of support we have from the school itself.
"We will be looking to roll it out to more schools if it proves a success, which I am sure it will."
Councillor Ruth Buttery, Dudley Council's cabinet member for children’s services, said: "This is a fantastic scheme as a result of really good partnership working within different departments of the council, and which will complement our Safer Routes to School programme.
"The programme strongly encourages parents and children to walk or cycle to school rather than taking the car, and supports our overall plan as a council to make Dudley a safe and healthy borough.
"We will now be working to engage and have talks with the communities at the three schools, residents who live nearby and other key stakeholders to develop the three schemes."
Further information on the School Streets programme is available at schoolstreets.org.uk