The joint bid by Staffordshire County Council and Stoke-on-Trent City Council focused on improving sustainable transport to support existing and growing employment sites.
These include: Keele University Science and Business Park, University Quarter (UniQ), Chatterley Valley, EtruriaValley and Trentham Lakes.
Improvements will be made to reduce bus journey times, help employers with their travel plans, develop safer routes for pedestrians and promote cycling routes.
Bus passengers using the key route from Keele to the city centre will also be able to use modern technology such as smart phones to help plan their journeys more effectively.
Cllr Mike Maryon, Staffordshire County Council’s Cabinet Member for Highways and Transport, said: "This award is another fantastic boost to our sustainable transport network in Staffordshire and comes just weeks after we won more than £4 million for investment in greener travel in Stafford.
"Today’s funding will not only help deliver a package of measures to tackle congestion, cut carbon emissions and promote economic growth, but will also play a huge role in making it easier for people to choose a more sustainable mode of transport.
"This joint partnership will help improve bus operations and services in North Staffordshire, make travel for our 31,000 plus students easier and encourage families to make a greener choice of transport rather than make short trips by car."
Councillor Ruth Rosenau, Stoke-on-Trent City Council cabinet member for regeneration, planning and transportation, said: "We are pleased that our funding bid has been successful, and for the benefits it will help us to deliver in Stoke-on-Trent, and the wider North Staffordshire region by working in partnership with the county council and businesses at the growing employment sites.
"It will help deliver our Local Enterprise Partnership objectives by significantly reducing vehicle miles by transferring car trips to more sustainable modes of travel. This will help to make our roads less congested and significantly reduce our carbon footprint.
"The successful bid contains prioritised elements of two individual bids. We are confident the same benefits of both schemes will be achieved through funding the city council is committed to spending as part of our Mandate for Change to make Stoke-on-Trent a great place to bring business, and support from other sources.
"We are thrilled that we have also received Department for Transport funding as part of two other Local Sustainable Transport Fund bids. We are one of 10 authorities to benefit from a £4.761m package of measures to promote walking to school through working with Living Streets. We will work with Sustrans to engage with pupils, parents and staff to promote walking and cycling, and receive £350,000 capital over the next three years to fund walking and cycling to school schemes."