The man, believed to be in his 20s, was killed outside a block of flats in Chervil Rise, Heath Town, on Monday.
Police received a 999 call at around 5.20pm reporting a man had been attacked with a machete.
A Midlands Air Ambulance landed in a helicopter on a nearby car park and witnesses saw paramedics trying to resuscitate the victim but he was pronounced dead at the scene.
It is understood the killer ran off on foot and officers are appealing for witnesses to get in touch.
The area was cordoned off by police as forensic teams examined the scene into the night.
A number of residents were unable to get back into their homes for a number of hours on Monday evening as police swept the area for evidence.
Another attack, where a man was shot at point blank range with a shotgun, took place in the same area off Chervil Rise in March 2018.
A resident of Chervil Rise said: "I heard a lot of noise and came out to see what was going on and the paramedics and air ambulance was here and trying to save him but they couldn't.
"I've only lived here one year but there has been a lot of trouble."
Police are now trying to trace the suspect from the attack and are appealing for any information that may lead to his arrest.
Anyone who was in the Heath Park area at the time and witnessed what happened or saw a man running away, is asked to contact West Midlands Police on Live Chat at west-midlands.police.uk or call 101 quoting log 3707 from July 13.
A West Midlands Ambulance Service spokesman said: “We were called at 5:21pm yesterday to reports of a stabbing in Chervil Rise in Wolverhampton. The Midlands Air Ambulance from Cosford, two land ambulances, a paramedic officer and the Midlands Air Ambulance Critical Care car attended the scene.
"On arrival, crews found one patient, a man, in a critical condition. Sadly, despite best efforts, nothing could be done to save the man and he was confirmed dead at the scene.”