Education bosses say the move will see the existing practice suite extended to give pharmacy students a flexible working space at its city campus.
A study area will be built for post-graduate students, along with two new meeting rooms, a new reception area, and a multi-purpose teaching space.
Dr Colin Brown, head of the School of Pharmacy at the university, said: "This exciting refurbishment has been designed to bring all elements of our successful pharmacy course offering together in one place in the heart of the city of Wolverhampton.
"All services, including the extended teaching facilities, meeting rooms and a new reception area will bring staff and students together in one space offering a complete, single pharmacy footprint at the university.
"Applications for pharmacy courses are on the rise and this investment will most certainly move the university's plans forward for continuing to develop our offer."
The refurbishment project is taking place over the summer, with work expected to be ready for the start of the new academic year in September this year, after the contract was handed to Willmott Dixon Interiors to carry out the work in the Wulfruna Building.
The university has previously invested in new interactive teaching spaces to offer pharmacy students facilities for flexible learning, with a further investment into a new pharmacy practice suite to support the clinical aspects of the course.
Dr Brown said: "Over the past few years we’ve completely changed the ethos of how we deliver Pharmacy education with our investment in Team Based Learning facilities.
"The learning is active rather than static, encouraging teamwork which provides students with opportunities to engage more with their peers and we hope that this further refurbishment will offer students an improved environment in which to study and learn."
Robert Eastham, project manager from Faithful+Gould, said: “Working with the university and Willmott Dixon to deliver the vision of a fully integrated pharmacy school, offering modern state of the art teaching facilities and breathing life back into the existing building will be challenging and rewarding and result in a fantastic facility for the students."