Rather than being located in one place, the new project will create a series of new estates across the area, with these being located at Lye in the borough of Dudley, Dudley Port in the borough of Sandwell, Willenhall in walsall and the Canal Quarter in Wolverhampton.
Chief executive of the Accord Housing group and member of the Black Country Local Enterprise Partnership Chris Handy said: "Not the since the Second World War has a Garden City been built on this scale or at this speed," adding that it would "transform" perceptions of the area.
The government has previously named Ebbsfleet in Kent and Bicester in Oxfordshire as the location of two new garden cities.
Originally pioneered in the 19th century by Ebenezer Howard as an alternative to cramped and polluted urban living, the garden city movement began with Letchworth in Hertfordshire.
The concept can also be seen in the West Midlands in places like the village of Bournville, which was subsequently absorbed into Birmingham.
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