Deputy prime minister, Nick Clegg will make the announcement today in advance of a controversial report by Lord Heseltine on how Whitehall and local government must be restructured to boost growth outside the south-east. The report is due to be published Wednesday.
The second phase of 'city deals' comes after England's eight largest centres outside London, including Birmingham and Manchester, won the right to decide how skills and transport funding is spent locally. They are also allowed to borrow against future tax receipts to invest in job creation schemes.
The 20 locations include Bournemouth, Brighton, Cambridge, Milton Keynes and Norwich.
Each of the locations will be asked to bid for the new status and it will be granted if they can demonstrate they have good ideas for economic re-generation.
Clegg will say: "Giving local areas more power and greater financial support to identify and nurture business opportunities is absolutely essential to economic recovery and the announcement of the second wave of city deals is another step in the right direction.
"It is important that all areas that want to bring councils, businesses and colleges together to promote local growth are supported in that ambition. We see absolutely no reason why city deals should not be offered to all eligible areas that want one."
"It is about central government getting out of the way to put local people in the driving seat, because they are best placed to deliver jobs and growth."