Leaders at Walsall Council said the project was "ground-breaking" and would lead to further regeneration of the town.
It comes as chiefs look to draw up a master-plan for the area – with businesses and residents asked to have their say.
Councillor Adrian Andrew, deputy leader of Walsall Council, said: "The new Willenhall Station is the catalyst for this ground-breaking project.
"The station is being delivered through the West Midlands Mayor, Government funding and contributions from Walsall Council.
"After much talk and no real action for decades we have seen, over the last three years, the dream of a new station become a reality and that is the game-changer in Willenhall.
"On the back of the new station the council is stepping in to create this ambitious plan to rid Willenhall of derelict sites and buildings and bring them back into use.
"This Love Willenhall Master Plan will form the basis of a supplementary planning document to give the council more influence to get landowners around the table to tackle the derelict buildings that are blighting Willenhall and create a brighter future for this proud town.”
Walsall Council will be contacting community and faith groups, voluntary organisations and businesses as well as local schools for their views.
Stations in both Darlaston and Willenhall are due to open by 2023, with a £400,000 deal also being agreed to buy land for a station in Aldridge.
Meanwhile West Midlands Mayor Andy Street said opening up a station at Tettenhall was his "next ambition" with a funding bid for the scheme due to be submitted to Ministers later this week.
People can have their say by visiting go.walsall.gov.uk/walsallcom/Walsall-Invest/Love-Willenhall