Phase one will focus on Victoria Street while phase three covers North Street, where the Civic and Wulfrun Halls are based, with the aim of creating public spaces and improving walking and cycling links and facilities.
The work in Victoria Street is expected to cost £11.6 million while the North Street revamp is estimated at £4.2 million.
Wolverhampton Council bosses are waiting to see if it has been successful with a bid made to the Government’s Future High Street Fund to progress the schemes.
Councillor Steve Evans, cabinet member for City Environment, said a contractor would be chosen ahead of work starting, should the funding be secured when a decision is made in September.
He said: “I think this will be good for the city centre. I think it gives us an excellent opportunity to get Wolverhampton back up and running and create that quality leisure space for shoppers, for residents, for people who cycle but we are not cutting out the motorist.
“We are hopeful we will gain the funding. We await the announcement in September and should we gain the funding then phases one and three, it would be delegated to myself and the appropriate director and go ahead with the works which people supported.”
Council leader Ian Brookfield added: “I’m more than happy to support this. What a big change this will be to the city centre.
“We’ve all seen the explosion of people walking, cycling and some of these works are designed to help that.
“This is going to make a major difference to how people look, act, work and visit our city centre.”
And Steve Simkins, cabinet member for city economy, said: “This will be part of our regeneration project.
“It’s the sort of environment we want to create for people to come and enjoy evenings out in Wolverhampton. It will help create jobs and it will help create a good economy moving forward and I think it’s a great proposal.”