The collaboration agreement gives devolved powers to WMRE, including the ability to propose changes to fares and passengers services, day to day contract and commercial management of services and ownership of the West Midlands Railway brand.
Members of the board are expected to back the proposal at a meeting on 16 January.
A report to the board said the agreement was important because it moved WMRE from being a stakeholder to a client, giving it the ability to compel action from the rail industry and hold it to account for its delivery to customers.
“In England, outside of London, only the Liverpool City Region has more extensive devolved powers in rail,” the report adds.
Without the collaboration agreement, the region would revert to its pre-2017 state of having no meaningful control over rail outcomes, states the report.
“This would make it much harder to realise the goal of a fully-integrated transport network, at a time when it should be becoming easier thanks to bus franchising,” it adds.
The DfT has confirmed it wants WMRE to continue to hold and exercise its devolved powers after 1 February, with the board agreeing it wants the same.