The cedar tree was felled for safety reasons earlier this year after being badly damaged during Storm Darragh.
It led the council’s arboricultural team to suggest Mr Cossey could use the salvaged wood to create the artwork, which now stands on the tree’s stump.
The sculpture is one of a number of churchyard schemes funded from the same pot of money, including the repair and cleaning of St Peter’s fountain, the council said.
Future plans include lighting up the gardens to improve city-centre safety, as well as the church facade and Wolverhampton Art Gallery.
Councillor Chris Burden, cabinet member for city development, jobs and skills, said the “wonderful sculpture” was part of plans to encourage visitors to Wolverhampton and make it “a destination city to be truly proud of”.
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