New courses will be offered in the areas of automotive and motorsport engineering, chemical engineering and electronic and telecommunications engineering for 2015-16, followed by the introduction of food engineering and aerospace engineering in 2016-17.
Most of the investment will go towards transforming part of the University's Telford Innovation Campus and providing specialist equipment for the new courses with additional investment in facilities for chemical engineering at the City Campus in Wolverhampton.
This will include creating a design and visualisation facility, a Formula 1 specification wind tunnel, engine test facilities, 3D printing facilities and laboratories dedicated to electronics and telecommunications, metrology and materials testing.
Professor Ian Oakes, deputy vice-chancellor for research and external engagement, said: "In the UK, it is estimated that there will be a shortfall of around 200,000 qualified engineers by 2020.
"This investment into creating enhanced provision and expanded facilities demonstrates our commitment to bridging that gap and producing the next generation of skilled engineers."
He added: "The new course offering, combined with activity based learning and live industrial project work will provide a real focus on creativity and employability.
"Our aim is for our graduates to be work ready and they'll have additional opportunities to gain key employability skills through workshops and club activities such as the Formula Renault Racing Team and the Human Powered Flight Club.
"This is very much an investment supporting the regeneration and growth of the regional and national economy. It also builds on the existing heritage and expertise in advanced manufacturing and engineering in the region."
This latest investment in teaching and learning facilities in science, technology, engineering and maths (STEM) subjects forms part of a wider investment such as the recent £22m Rosalind Franklin Science Centre in Stafford Street, Wolverhampton.
Last summer, the University invested £500,000 to create engineering facilities in Telford, including new workshops with two car bays, benches and professional tools to support the students' work on the racing car.
