Passers by made the grim discovery on the old Main Line Canal, off the junction of Broad Street and Wednesfield Road, at 5.45am today.
A man walking by the canal at the time spotted the woman in the water.
Police were called to the scene and confirmed the sighting and it is believed the body was removed with help from fire crews.
There was no immediate indication as to the cause of death.
The victim was described as being white and European of origin, but there was no immediate clue as to her identity.
Police initially said they were treating the death as unexplained but have now said the circumstances are not suspicious.
A length of canal towpath was sealed off by police after the body had been discovered.
Police viewed CCTV and spoke to a number of people who were in the area at the time during their investigations this morning.
West Midlands Police spokeswoman Gina Lycett said: "A post mortem examination will take place in due course."