Bosses at the venue announced plans to expand in October and Keith Williams Architects has recently drawn up plans to build a pop-up theatre next door on the site of the former Post Office building on Lichfield Street.
Members of the public were asked for feedback last month, which has resulted in the theatre's plans being backed.
CEO and Artistic Director Adrian Jackson said, “There is a vision to make Lichfield Street the Arts Hub of Wolverhampton City Centre and although the theatre already contributes massively to the local economy, there is so much more we can achieve in the community, for education and cultural enrichment”
Councillor John Reynolds, Cabinet Member for City Economy, added: “This is a bold move by Wolverhampton Grand Theatre to bring a major uplift to the city centre’s entertainment offer."
The former Post Office building in Lichfield Street closed in 2013 and moved its operation across the street.