The assault happened near Cineworld in Southwater Square at around 10.30pm on Saturday, and police are appealing for witnesses.
A West Mercia Police spokeswoman said: "Did you see an assault in Telford on Saturday night (September 17)?
"A man was reported to have assaulted a woman around 10.30pm near Cineworld in Southwater Square.
"The man was described as having short, brown hair and was wearing a grey jacket.
"The woman was said to be white, small, with a slim build and long, dark hair.
"She was wearing a grey dress and trainers and carrying an over-the-shoulder bag with a long strap.
"It was reported that a small group of people and a taxi were in the area at the time of the incident.
"Officers urge anyone who saw the incident or have any information about it to please get in touch."
Anyone with information should contact police by visiting westmercia.police.uk/contact/af/contact-us/ or calling 101, quoting incident 714 of September 17.
Alternatively contact Crimestoppers anonymously at crimestoppers-uk.org or by calling 0800 555111.