The first floor will also accommodate a new Acute Medical Unit along with a Medical Ambulatory Emergency Care Unit, within the refurbished existing Emergency Department footprint.
The site will be prepared in readiness for the first stage of development with construction getting under way early next year.
Walsall Council's planning committee approved plans for the development and agreed it is a vital project that will improve healthcare.
Richard Beeken, Chief Executive, Walsall Healthcare NHS Trust, said: "This is such an important project for the people of Walsall who rely on our services and it will help us transform the way in which health and social care is provided.
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"We know we will see a yearly increase in ED attendances of more than 10,000 patients once the Midland Metropolitan Hospital is open in 2022 but we have an immediate need to improve the inadequate and sub-standard physical environment for both our patients and our staff who are trying to work within these constraints.
"The Covid-19 pandemic may have dominated much of our healthcare activity but sterling work has been continuing on this project throughout this period to ensure we stay on course to maximise safety and quality of care for all."
Richard Myatt, Senior Project Manager, Interserve Construction, said: "We are obviously delighted that the project is taking another positive step forward, and are looking forward to continuing our work with the trust and the rest of the team in the development of the new Emergency Department.
"Work will soon commence on the site, with the main building construction starting early next year. With many of the Interserve team currently working with NHS trusts in the West Midlands, we hope that the new Walsall Manor Emergency Department will be part of a legacy of successful projects in our region’s healthcare estates."
