Nikki Sinclaire will represent Solihull & Meriden Residents' Association at the May 6 poll.
She was expelled from UKIP after refusing to join with other European parties which she said had ‘extremist’ views.
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The SMRA group announced its formation last month.
Miss Sinclaire made the announcement at a group meeting at The Royal British Legion in Knowle on Wednesday.
A SMRA press release said: “Nikki announced the surprise move, pledging her commitment to SAMRA’s ethos of restoring political power to local people.
“An outspoken opponent of transfer of power from Britain to Brussels, Nikki has campaigned against sleaze and corruption.”
She said: “I am the first British MEP to receive a satisfactory audit of my accounts.
“If I am elected to Westminster I will lose my seat in Brussels, and take a £20,000 pay cut. I am not in this for the money; I am in it because I believe in honest and open government.”
The group – also fighting all 17 Solihull Metropolitan Borough Council seats up for election on May 16 – said campaign themes will be ‘more efficient local governance’.
It also lists protection of Green Belt land and opposition to ‘further threatened cuts to local hospitals’ as key priorities.
Group spokesman Trevor Eames, pictured with Miss Sinclaire, said: “There are important consultations coming up, and for us to have an MP representing our interests rather than those of political parties will put us in a fantastic position.
“It is about time that local people had their say.”
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