The municipality of Velenje (MOV) is located in the eastern part of the Šaleška dolina valley. The central part of the municipality is situated on the plain along the Paka river. The entire V-plain of the Šaleška dolina valley has been urbanised, as over the last 50 years the town – fifth largest in Slovenia in terms of population – has grown and spread to include former settlements and hamlets of Škale, Stara vas, Staro Velenje, Šalek and Šmartno.
The northern part of the municipality reaches into the hills, which stretch from Razborje to Graška Gora and across the Paka gorge at Huda luknja to Paški Kozjak. The eastern boundary of the municipality runs along Dobrnsko podolje across the Pirešica creek and towards the south to the Ponikevska planota tableau and Ložniško gričevje hills, which separate Šaleška dolina from Spodnja Savinjska dolina i.e. the lower Savinja valley. The western boundary splits Šaleška dolina in half along the north-south line in the area of former village Preloge, where presently under the basin bedrock the most intensive lignite mining is taking place by the Premogovnik Velenje coalmining company. The border continues along the lower Velunja creek to the foothills of Graška Gora.
The heart of the municipality is the town of Velenje, a predominantly industrial centre (Gorenje, Premogovnik Velenje, Vegrad, Esotech, …), which is fast becoming the hub of the Savinjsko-Šaleška regija region with highly developed trade and other administrative, educational and other business sectors. Velenje has the status of a municipality.