Punches were allegedly thrown during the fracas. A witness branded the scenes 'embarrassing' and 'an absolute disgrace'. Tory leader Wendy Thompson has vowed to suspend anyone involved in the alleged trouble on December 14.
Dozens of Tory party members from across the city attended the meeting, held every month to discuss policy.
The incident is said to have started after Jin Kalkat, a prospective candidate for next year's council elections, refused a request from Wolverhampton party chairman Raj Singh to deliver leaflets around the city.
Mr Kalkat is said to have suffered 'two or three' punches to the head and to the body. The identity of the alleged attacker has not been made public.
An eyewitness told the Express & Star Mr Kalkat then entered a separate room and was grabbed around the neck by another party member.
"It was complete madness in there," another eyewitness said. "Jin was punched and came out shouting at everyone. He walked into another room and then got put in a neck lock," the eyewitness claimed.
"People were stunned. The atmosphere turned very nasty. It is embarrassing for the party. We expect people to vote for us yet the way some members are carrying on is an absolute disgrace."
Mr Kalkat and Mr Singh declined to comment. West Midlands Police spokeswoman Deb Edmonds said: "We have received a report of an assault that is said to have taken place between 8pm and 9pm on December 14 at Wolverhampton Civic Centre.
"The victim is not seriously injured. We are looking at CCTV from the venue and no arrests have been made at this stage."
Councillor Thompson said: "I understand the police are looking into an incident that took place at a Conservative party meeting. I welcome their involvement.
"Like any large political party if there is any matter that goes against the upholding of decent standards the party membership of those responsible will be called into question."
A Conservative spokesman said: "It would be inappropriate to comment while there is a police investigation ongoing."