The regeneration project will be the first major project by Citizen, the new name for housing association WM Housing Group and Whitefriars Housing.
As part of the project, The Vincent Wyles House tower block, which is made up of 144 flats, will be demolished and 93 new homes will be built in its place.
Meanwhile, the 15-storey William Malcolm House, made up of 112 flats, will be refurbished. The project aims to be completed in 2024.
A survey of residents who live in the blocks revealed just 21% said it was a good place to live and 40% said they the area needed to be improved. They also identified anti-social behaviour issues in the area.
Kevin Rodgers, Chief Executive of WM Housing Group, which will formally become Citizen in September, said: “This is a fantastic project that will completely transform an area of Coventry.
“This significant investment represents the renewed commitment we have to improve our homes as we become Citizen and we are committed to working with partners to improve the lives of our residents living in Coventry.
“We know that there are a number of issues with Wyken because our residents have told us this. We believe they deserve better and we are determined to deliver that.”
A consultation event allowing residents to see the initial plans will take place in September.
Cllr David Welsh, Deputy Cabinet Member for Housing and Communities, added: “I’m pleased that this investment has been found to build and refurbish dozens of homes in Wyken.
“We must continue to work together to further develop social housing that is available to a growing population. It is a major challenge but any positive steps are to be welcomed.”