The authority launched a public consultation on a scheme to extend parking facilities at the site, which attracts thousands of visitors every year.
It would have seen seven mature trees chopped down to create 70 new parking spaces in a bid to cater for increased demand at the park.
However, the scheme has now been ditched in the wake of public fury over the plans.
Wolverhampton Council said in a statement: "We have listened to your concerns and have decided not to move forward with the current proposal and can confirm we will not be removing any trees.
"We are now looking at alternative plans to support events while avoiding the removal of trees. We will publish the revised consultation in due course.
"Anyone who has taken part in the current consultation, your feedback and comments will be saved for review and consideration.
"We would like to thank everyone for taking part in the consultation, to help us make the right decisions for our city."
The move has been welcomed by Park ward councillor and Cabinet member Mike Hardacre, who said: "I welcome the withdrawal of the scheme as it stands and look forward to a sensible consultation into what can be done in the best interests of park users and visitors."
The council had been widely criticised over the plan to chop down the trees, with concerns raised over the potential impact on the environment.
Lower Penn Green parish councillor Steve Bradley described the scheme as a "daft plan" considering the council had recently declared a climate emergency. Wolverhampton South West MP Eleanor Smith also opposed it.
The city's Green Party has urged the Labour-run authority to protect its green spaces.
A new consultation is due to be published in the coming weeks.