Two men were killed after a convertible Audi crashed on the A460 Cannock Road near the junction with Wood Hayes Road in Westcroft, at around 4am on Sunday.
The convertible left the road and ended up in a hedge with major front-end damage, including a smashed windscreen. Leaves and branches were still stuck in the car when it was recovered on Sunday afternoon.
An unmarked Audi police car was parked nearby and behind the cordon, where a blue screen had been put up while collision investigators examined the area.
West Midlands Ambulance Service has now confirmed the two people who died in the car were both men. They were both pronounced dead at the scene, while the third man is now in hospital.
A spokesman for the service said: "On arrival, crews found the car with three patients involved. Sadly, it quickly became clear nothing could be done to save two of the men, and they were both confirmed deceased on scene.
"The third patient, also a man, suffered critical injuries and was given advanced trauma care at the scene with treatment continuing on blue lights and sirens to hospital."
Two ambulances, two paramedic officers, a MERIT trauma doctor and critical care paramedic were sent to the scene.
An investigation has been launched by the Independent Office for Police Conduct, which said the smash involved one car and happened after a "police pursuit".
A spokeswoman said: “We have begun an independent investigation following a referral from Staffordshire Police into the circumstances surrounding a road traffic incident on Wood Hayes Road, Essington, Wolverhampton at 4am this morning, following a police pursuit.
"The fatal collision involved one vehicle and two people sadly died at the scene.
“Our investigators have been sent to the post incident procedures and are carrying out an assessment of the circumstances and available information. Our investigation follows a mandatory referral from Staffordshire Police and is in its early stages.”