For the seventh year in a row, Melbourne has been named the best city for life in the world, while Sydney has not yet topped the top ten for fear of terrorism, according to the Economist Intelligence Group report.
The report ranks 140 cities worldwide according to the following criteria: security, health care, cultural content and environmental protection, education and infrastructure.
Among the top ten on the list are Vienna in Austria, Vancouver and Calgary in Canada, Adelaide and Perth in Australia, Auckland in New Zealand, Helsinki in Finland and Hamburg in Germany.
Melbourne, the second-largest city in Australia and the capital of the state of Victoria, received the highest ratings for health care, education and infrastructure.
Mayor Robert Doyle said it was a great achievement that all citizens should be proud of, but said that this does not mean that the city is perfect.