The Defence Secretary wants to see a new station and a car park created on the Birmingham to Shrewsbury line, claiming it would bring "many economic benefits" to the area.
The Tettenhall station would be the first stop after trains leave Wolverhampton, before travelling on to Bilbrook, Codsall, and on into Shropshire.
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In a letter to Transport Secretary Chris Grayling, South Staffordshire MP Mr Williamson put forward the benefits of creating additional capacity on the line.
"As you will be aware there has been a large increase in passenger numbers from stations in my constituency, including Codsall and Bilbrook, on this line and this has led to quite substantial benefits to the local area," he said.
"As you will also probably be aware Wolverhampton Council has had some difficult and challenging economic times, and I did think one of the key areas of driving economic growth would be the creation of a new station in Tettenhall.
"I think this would bring many economic benefits to the area, drive growth and also passenger numbers. This especially accompanied by car parking would also be very beneficial."
Mr Williamson has also sent his letter to local authorities, including Wolverhampton and South Staffordshire.
Tettenhall Wightwick councillor Wendy Thompson, the opposition Conservative leader on Wolverhampton Council, has welcomed the plans.
"I think a station in Tettenhall would prove to be highly popular," she said.
"Other methods of getting to and from places without using the car are always welcome, and a lot of people love to travel by train.
"I look forward to seeing how these plans develop."
Wolverhampton councillor Milkinder Jaspal said the station would be a waste of money.
"I can't see the logic in it," the Heath Town councillor said. "People can just get the bus rather than spending all that money on a railway station that I don't believe would be well used.
"It just doesn't make any sense to spend public money on a pointless railway station, particularly when resources are scarce."
Tettenhall previously had a station on the Wombourne Branch Line. It opened in 1925 but closed seven years later due to low usage and is now a tea room.