The area around the canal network in Horseley Fields was closed off as bomb disposal experts were called on Easter Monday.
Officers from West Midlands Police were sent to the junction of the Birmingham Canal and Wyrley and Essington Canal after what appeared to be a mortar was found.
It was discovered at around 11.30am near the Lower Horseley Fields bridge, just off the A454 road.
The Explosive Ordnance Disposal team was then called and a controlled explosion carried out.
The area, which is situated near the West Coast mainline route into Wolverhampton, was sealed off by officers from West Midlands Police, with cyclists and walkers redirected along the A454.
The area has since been reopened to the public.
A West Midlands Police spokesman said: "We were called to reports of what was believed to be an unexploded WW2 device found in the canal beneath Horseley Fields Bridge, Wolverhampton at around 11.45am this morning.
"We contacted the EOD who removed the device and carried out a controlled explosion.
"A cordon put in place to ensure public safety has since been lifted."