The city council's official statement of nominated persons for the May 5 elections shows incumbent Mark Evans and Udey Singh as the Tories candidates for the Tettenhall Regis seat.
Tory leader Councillor Wendy Thompson said she was 'absolutely amazed' to see Mr Evans' name on the document after he stood down last year.
Udey Singh - the son of former party chairman Raj Singh - was selected to contest the seat in his place.
Under electoral law candidates can not be withdrawn at this stage of the process, meaning voters will be faced with the unusual sight of two names from the same party on ballot forms.
Mrs Thompson said: "Only one candidate has been through the proper application process and that is Udey Singh.
"We were absolutely amazed when we saw that another nomination had gone in. I was unaware that Mark Evans was planning to put in an application.
"He was approached when the selection process was taking place and was very definite that for personal reasons he didn't want to continue.
"At this stage he is unable to withdraw his nomination due to the rules of the electoral process.
"There has clearly been a breakdown in communication."
All 20 Conservative nominations to contest seats for the election must be agreed by the regional party chairman. The position currently held by Andrew Randle, who took over from Raj Singh earlier this year.
Mr Evans' nomination was proposed by Gail D Crook.
Mrs Thompson added: "We know it is going to be extremely confusing for voters in Tettenhall Regis to see two Conservative candidates on their ballot forms.
"We want to make it very clear to the electorate that the only true Conservative candidate for Tettenhall Regis is Udey Singh."
In a statement released by Wolverhampton Conservatives, Mr Evans, who has held the seat since 2012, said: "I fully support Udey Singh and will be campaigning with him at the election.
"I know if elected he will work hard for all residents in Tettenhall Regis."