Birmingham's social services department is to benefit from nearly £35 million to develop four new centres for older people.
The government has announced the £34.7 million credit as a response to the increasingly elderly population.
The new centres will provide 256 places to people over 65 and will be developed by the city council in tandem with a private company.
It will provide intermediate and respite care to elderly people including those suffering from dementia.
Health Minister Liam Byrne, MP for Birmingham Hodge Hill, told icBirmingham: "After a lifetime of service to their community and country, they deserve top quality care.
"My priority as a Minister for Care Services is to ensure every older person in this country is treated with dignity and respect. Centres like these in Birmingham are one of the ways we make sure this happens."
The funding is part of a government allocation totalling more than £125 million aimed at five councils across England.