Factory Lock number three, near Factory Road and Furnace Parade, in Tipton, was shut on Monday morning.
A Land Rover Discover was shown on its side in the canal in a dramatic photo. Tyre tracks and broken glass could be seen at the side of the lock and there was a small amount of fuel leaking out of the back of the car, but contained within the lock.
The Canal and River Trust, sharing the image on social media, said: "Factory Lock No 3 on the New Main Line Canal in Tipton is closed as a car is in the lock. We're working on a plan to get this removed as quickly as possible."
A spokesman for the Trust said: "Yesterday we were alerted that a Land Rover car had been driven into Factory Lock number 3 on the Main Line Canal in Tipton.
"Thankfully, there are no reports of anyone being injured, and we are working on plans to crane the car out of the canal. Following a site visit we are hoping the car will be removed today."
The area around the lock was taped off by Fire and Rescue as members of Canal and River Trust surveyed the area with contractors to figure out the best way of removing the car from the lock.