The new aid comes at a time United Nations aid agencies are facing an acute shortage of funds from global donors to meet relief needs in Sudan.
Of the total $124 million, $54 million will address humanitarian needs including food, nutrition, health, protection, shelter, education, water and sanitation, the European Commission said.
The United Nations aid agencies have been facing funding shortages in 2017 concerning the humanitarian needs of millions of people in Sudan.
The European Commission on Monday announced a $124 million aid package for Sudan, saying about 4.8 million people needed urgent humanitarian assistance in the country.
The new aid comes at a time United Nations aid agencies are facing an acute shortage of funds from global donors to meet relief needs in Sudan.
The package was announced as EU Commissioner for Humanitarian Aid and Crisis Management, Christos Stylianides, was on a visit to Sudan, including to conflict-hit areas of Darfur.
"Here in Sudan the humanitarian situation continues to be critical," Stylianides said in a statement issued by the European Commission.
"Millions have been displaced for many, many years in Darfur," he said, adding that the new EU funding will also assist refugees from South Sudan since a conflict erupted in their country in December 2013.
Of the total $124 million, $54 million will address humanitarian needs including food, nutrition, health, protection, shelter, education, water and sanitation, the European Commission said.
The remaining $70 million is to be channelled through the EU Emergency Trust Fund for Africa, to support displaced people, migrants and host communities.
"The additional funding will scale up much needed assistance both for South Sudanese refugees and in the newly opening areas in Blue Nile, South Kordofan and Jebel Marra," the top UN aid official in Sudan, Marta Ruedas told AFP.
"The fact that it addresses both humanitarian and development needs in Sudan is a welcome sign of a more flexible response to the real needs of a protracted crisis."