Dawley, Ironbridge, Madeley, Newport, Oakengates and Wellington will receive the money, which is being made available by Telford & Wrekin Council.
The money will be used to support a range of capital schemes to improve the look and feel of the high streets and help attract more shoppers to the area.
The funding will be available from 2020 until 2022 and the council said it will be engaging with organisations in each town to help identify how this money can be best used.
Council leader Shaun Davies said: “This new £5 million fund will provide more support across these key areas and will be built into our budget for the next two years.
“It will be vital that we first engage with and listen to representative and business groups in these towns to help identify the most effective ways we can use this funding to boost high streets.
“For example we may be able to use this to support other bids and unlock much more support or may be better spent on specific schemes such improvements to infrastructure or transport.
“Essentially no decisions will be taken until we have listened to local views. We will begin this process in the new year to identify each area's priorities and plans to implement these.”
It will build on Pride in Our High Street, as well as the Telford 50 Legacy Fund and Community Pride Fund, which has brought £4 million into community regeneration and improvement schemes.