The 41-year-old woman was pronounced dead at the scene at a property in Tangmere Road, Ettingshall, just after 8pm on Sunday.
A 50-year-old man has been arrested on suspicion of murder and was in police custody on Monday evening.
Officers remained at the scene throughout Monday, with a blue police tent erected outside the two-storey home where the woman was killed.
The house is part of a new-build estate near the A41 Bilston Road and access to the end of the cul-de-sac where the woman died was guarded by uniformed officers as investigators examined the scene.
Meanwhile neighbours were left devastated after hearing of the death of the woman, whose identity is yet to be officially confirmed by police.
Sunny Singh, 32, a courier, said: “I was at work, but my wife was at home. She was so upset by it all. She had terrible shock and had to be taken to hospital by ambulance. We know the people involved. It’s very sad for everyone.”
One woman, who did not to be named, said: “I don’t want to talk about it. It’s too upsetting for me. I know them. We are all just in shock at the moment.”
Tony Wheate, 40, a nurse, said: “Myself and my wife along with everyone on the estate are really shocked. We didn’t know the people involved, but there is a WhatsApp group for the residents and the feeling on there from everyone is of shock and sadness . Our condolences to the family.”
The woman was treated by medics after emergency services were called at around 8.10pm but nothing could be done to save her and she was pronounced dead at the scene.
Detectives believe the incident was domestic-related and the 50-year-old male murder suspect was arrested by officers at the scene.
Councillor Beverley Momenabadi, who represents the Ettingshall area where the woman was found dead, said the incident had left local residents shocked.
“What has happened has truly devastated and shocked our local community, that I both live in and represent as a councillor.
“I have received dozens of messages from neighbours and residents offering their condolences. Many are in sheer disbelief.
“My prayers are with the woman’s family and I hope that anyone involved is brought to justice.”
Meanwhile, a parent taking their children to a nearby school said they saw the police outside the property on Monday morning.
The parent, who wished to remain anonymous, said: “All I saw was the blue tent on the driveway and the police car parked opposite with a police van blocking the road, I didn’t see anything other than that.
“I was on the way to my children’s school which is a 30-second walk from there, unfortunately a few children saw this too. This was at 8.55am on Monday morning.
“I live a five-minute walk from there. It is a terrible thing to happen anywhere, but especially when it’s so close to home and my children’s school.”
A spokesman for West Midlands Police said: “We were called to Tangmere Road, Ettingshall, at just after 8pm yesterday (19 September) and found a 41-year-old woman with serious injuries.
“She was sadly confirmed dead at the scene.
“A 50-year-old man was promptly arrested on suspicion of murder and remains in police custody for questioning. It’s understood to be domestic-related but our enquiries remain ongoing.”
West Midlands Ambulance Service sent an ambulance and paramedic officer to the scene along with a trauma doctor and critical care paramedic.
A spokesman for the service said: “We were called at 8.13pm on Sunday to an address on Tangmere Road, Ettingshall, Wolverhampton. One ambulance, a paramedic officer and a MERIT trauma doctor and critical care paramedic attended the scene.
“On arrival, we found one patient, a woman, who was in a critical condition. She received advanced life support on scene but unfortunately, despite the best efforts of ambulance staff, it became apparent that nothing more could be done to save her and she was confirmed deceased at the scene.”
It came only hours after a 73-year-old man died in hospital on Sunday after being attacked at a home in Hordern Road, Whitmore Reans, Wolverhampton.
Dawid Arent, 32, of Hordern Road, has been charged with his murder.