The body was found in the water on Bridgewater Street at about 8.30am on Saturday.
Officers appealed for anyone with information to come forward.
A spokeswoman for West Midlands Police said: "We’re investigating after the body of a man was found in the canal on Bridgewater Street, Coseley, at around 8.30am Saturday morning. The death is currently being treated as unexplained and our inquires are ongoing.
"Anyone with any information can contact us via Live Chat on our website or call 101 quoting log number 955 of 29 October."