Police were called to the Staffordshire and Worcestershire canal at 10.40am yesterday after walker Philip Rhodes reported spotting the body in the water near The Droveway in Pendeford.
Mr Rhodes, aged 62, who lives in Pendeford, said: "I walk down there every day. I just happened to find the gentleman, I have seen him before. It is very sad."
Staffordshire Police say they are not seeking anyone else in connection with the death.
Staffordshire Police Inspector Jonathan Staite added: "Our thoughts along with all from the emergency services who attended are with the family and friends of the man involved."