The Department of Transport announced the funding this week and works to take down and replace the bridge in Arthur Street will be done before the end of March next year.
Routine inspections by the council revealed the brick bridge, which is overlaid with a more modern footbridge, had deteriorated rapidly and requires demolition as it poses a potential safety risk to the Metro tracks below it.
The old bridge structure will be removed and the newer footbridge that was placed over it will be refurbished, retaining the pedestrian access to Bilston.
The council put in a bid for DfT funding for the demolition last year, but this was unsuccessful at the time due to over subscription.
However, the department informed the council this week that £1 million would now be made available as part of £100 million being shared across the country as part of the nationwide Covid-19 recovery plan.
Councillor Steve Evans, City of Wolverhampton Council’s cabinet member for city environment, said: “I welcome this funding which will enable us to remove an unsafe brick bridge and refurbish the modern footbridge.
“Our routine inspections revealed that the old bridge is crumbling and is in desperate need of replacement before it jeopardises the West Midlands Metro tracks beneath it.
“The Metro is clearly of vital importance, transporting eight million passengers a year and connecting our city with the wider region.
“Following the funding announcement, our engineers are now programming in this work and it will be done before the end of March 2021.”