The public art project, which has been in the planning stages for more than two years, will be placed in the Crown Centre.
Designed by borough artist Steve Field, the clock will feature three historical glassmakers who will, on the hour, parade with their wares.
Such processions - known as Friggers Parades - were common sights in the past.
The aim of the sculpture is to symbolise the glassmaking traditions of the town as well as attracting more attention to the shopping centre.
Stourbridge area committee backed plans for the automata, to be funded through Dudley Council's council's capital programme, grants and private sector partnerships, in October 2000.
In a report to its meeting, on December 2, Dudley's director of the urban environment, Roger Johnson, says the work of art should be in place by July 2003.
"Following the initial endorsement, progress on the project initially had to be slower than ideally desired due to the exceptionally large workload of the borough artist generated around the time of the Millenium," Mr Johnson states in his report.
Planning permission now has to be sought for the sculpture and it is hoped that the clock will be up and running in time for next year's Borough Festival in July 2003. A suitable unveiling also will be planned.