The Community Boost Central project will work closely with local people, businesses and organisations in the Central Area Council area of Barnsley, which covers Kingstone, Worsbrough, Stairfoot, Dodworth and Central wards.
Government funding has been secured through the UK Community Renewal Fund and is supported by the South Yorkshire Mayoral Combined Authority.
If the project proves successful, the council - whose cabinet will meet on Wednesday to formally accept the cash - hope to roll it out across the borough.
South Yorkshire Mayor and Barnsley Central MP Dan Jarvis said: “It will help get our residents into stable employment, give them the skills they need to flourish in an ever-changing economy and support businesses as they drive our economic recovery and renewal in the aftermath of the pandemic.”
Coun Jenny Platts, cabinet spokesperson for communities, added: “It’s time to believe in the possibilities of Barnsley, to look to the future with excitement and optimism.
“Our borough is a place that fosters and grows ambition, enabling everyone to be the best they can be.
“With Community Boost Central we’re finding new ways to help local people get back to work, training or education, and boosting opportunities for everyone in the Central area.
“If this is successful, we want to roll it out across Barnsley.
“We’ll be supporting businesses to adapt, thrive and generate good local jobs, leading to improved health and wellbeing for local people.”