Driverless cars are to be tested on roads Birmingham and Coventry.
A wireless network will be developed on 80 kilometres of roads across the two cities.
The vehicles will be trialled on both public roads and specially designed tracks.
It is expected to be operational in the next 18 to 24 months.
The £25 million project is being led by Professor Paul Jennings, an expert in connected and autonomous vehicles (CAV), from the Warwick Manufacturing Group.