The car park at Outwood Railway Station will be expanded in response to complaints vehicles are being left in nearby residential streets.
Wakefield Council has received funding for the venture from the West Yorkshire Combined Authority (WYCA), who hold the purse strings on public transport projects in the region.
Provisional designs for the scheme will now be put together.
Announcing the expansion at a meeting of full council on Wednesday, transport portfolio holder Matthew Morley said it was "fantastic news" for Outwood.
The station is one of the most used in the district and is the only calling point on Northern train services between Wakefield and Leeds.
Asked about the issue by ward councillor Jack Hemingway, Coun Morley said he was aware of overspill issues on Ledger Lane and Potovens Lane as a result of the car park's size.
He said: "Outwood has got a very successful station, but with that comes the problems with car parking.
"I'm pleased to say we have pushed forward for additional car parking at Outwood Station.
"Only this week the (West Yorkshire) Combined Authority has sent money down to Wakefield Council for this, so we can put together a business case and detailed designs."