The Plymouth-based Peninsula Medical School has been given funding for more undergraduate student places.
The school will be able to train an extra 33 undergraduate students each year, allowing its annual intake to go up to 214, an increase of 20%.
It follows recent news that the school won its bid for a dental school to train 62 students a year.
It is hoped the dental school will lead to more qualified dentists staying in the South West.
Thelma Holland, chief executive of the South West Peninsula Strategic Health Authority, said: "This news is very welcome and demonstrates the reputation that the Peninsula Medical School is gaining.
"It also shows the strong partnership that exists between the medical school and NHS locally."