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Labour councillor Steve Evans claims 'by and large' beggars in the city are not homeless and just want money for alcohol. He is now planning to work with the authorities in a bid to take those not in need to court.
He added: 'Between the local authority, our partners and the courts we are working to take action to those responsible for begging. They can be taken to court but it's all about proof.
'I think they will have the equipment and the evidential information to say who has been begging.
'We would be looking to take them to court and get some kind of exclusion order on the city centre.'
One 28-year-old beggar in the city centre, who did not wish to be named, said he was worried Mr Evans' comments will 'put people off giving me money'.
He said: 'Some of us are genuinely homeless and in need of cash, not for alcohol, but to put a roof over our heads for the night and eat.
THE LAWS ON BEGGING IN THE UK
Under the Vagrancy Act 1824, it is an offence to sleep rough or beg in England and Wales.
Those doing so will be told to move along and can be arrested.
Those who continue to persistently flout the law can face jail for the offence.
'It is a shame a select few can give us all a bad name. Some of them are just conmen.
'They are professionals who take advantage of people's generosity when we are the ones in desperate need of real help
'They are here most days too, so they must be raking it in.'
Simon Van Der Hoek, 48, who has been living on the streets of Wolverhampton for three years, said: 'It's not right that somebody who isn't homeless could exploit people like this.
'The only reason I ask for money is so I can eat, not for any other reason at all.
'I don't ask for any more than I need. So it's wrong if there's someone doing that.'
Paul Bird, 29, who has been begging for six months, added: 'I don't reckon everyone who begs sleeps rough around here.
'I had a bad accident after my mum died and ended up disabled on the street, so it would wind me up if someone's pretending to be homeless.'
And Ash Cooper, 26, who has been sleeping rough in Wolverhampton for six months, said: 'People should be allowed to beg, because if you make that illegal it's like saying you can't ask for help.
'But if [beggars] are not telling people the truth then that's wrong and that gets me angry.'