Officers swooped on a property in Thimblemill Road, Smethwick, which was they said was being used by Romanian women.
Ward councillor Roger Horton said the property had been an issue of major concern in the area.
Police said three women were discovered at the property who confirmed it was being used as a sex establishment and the occupants had left the building.
Councillor Horton said several residents had called for action over the brothel. He said: “We had people coming into the surgery and writing letters about it. Some letters were anonymous, people were frightened to put their names on.
“The police got involved with other agencies and sorted it out. I’m pleased it has been sorted out. This isn’t the first one. I’m hoping it will be the last.”
Pc Gurpreet Gill, from West Midlands Police, said: “We will not tolerate any activity that is going to undermine public safety and affect community life.
"We take all reports seriously and would always encourage anyone who has suspicions of this sort of behaviour to let us know by calling 101.”
Jessica Redmond, a police engagement officer in Sandwell, said: “Officers closed down what they believed to be a brothel operating in Smethwick.
"Officers discovered three Romanian females openly admitting to using the premises for sexual services.
“Officers continued to monitor the premises immediately thereafter in response to several complaints by residents before getting in touch with the letting agent, sexual exploitation team and immigration.”
The police operation was carried out last month but details have only now been released.
It is the latest suspected brothel to be closed in the West Midlands amid concerns over trafficking and modern slavery.
In February, West Midlands Police raided a suspected brothel in Coventry uncovered by adverts on adult websites.