Fairytales Day Nursery has now been closed by Ofsted along with other linked premises.
West Midlands Police said it is treating the death on December 9 as"suspicious" and an investigation is under way.
"The notification means that the provider met their legal responsibility as set out in the statutory framework for the early years foundation stage to notify Ofsted of serious accident, illness or injury to, or death of, any child while in their care, and of the action taken. It said inspectors carried out another visit on December 15 and found the provider failed to notify Ofsted of a change in manager, which is an offence, and it was not meeting some of the requirements.
Wolverhampton magistrates heard that a routine inspection of the business in July 2018 by Dudley Council hygiene inspectors found mouse droppings under cupboards and on the floor behind a refrigerator in the kitchen. On the nursery's website, it says it has three private settings in Dudley town centre offering childcare for families with children aged from three months to nine years.
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