Councillor Bob Lloyd, who represented Wednesbury South for six years, died on Saturday.
Sandwell Council leader Councillor Yvonne Davies described Councillor Lloyd's death as "tragic" as she paid tribute.
Councillor Davies said: "I think everybody, including myself is still in shock and it is very difficult to come to terms with.
"He was universally loved. Everyone who met him says what a gentleman he was and he was a peace keeper. He always tried to keep everyone working together positively.
"He was a joy to work with.
"He was always positive, he was always able to find the humour in things and was always reaching out to help others.
"He really was a wonderful, wonderful man and I can’t begin to think how his family must be utterly devastated."
Councillor Lloyd was first elected to the council in 2014 and as the cabinet member for inclusive economic growth had responsibility for job creation.
He was a driving force behind proposals to revitalise town centres in Sandwell and was set to announce development plans for West Bromwich town centre at Wednesday’s cabinet meeting.
His passing was marked on social media by friends, colleagues and political rivals.
Councillor Richard Jones, posted on Twitter: “I am devastated that my friend Bob Lloyd suddenly past away this weekend. He was one of the best ones and will be sadly missed but rest assured not forgotten.”
The Sandwell Conservative Federation, adding their condolences to his family, posted: “We are shocked and saddened to hear about the passing of Cllr Bob Lloyd. Bob was a community champion and a decent man and his passing will be a huge loss to the Labour movement in Sandwell.”
A spokesperson for Sandwell council said Councillor Lloyd is survived by two children and a grandchild.