Melbourne has moved from third to second spot as the most liveable city in the world in the Economist Intelligence Unit's (EIU) latest ranking. Every year, the EIU compares 140 of the world's major cities and ranks their livability based on stability, health care, culture and environment, education, and infrastructure. Melbourne was also acknowledged as being home to a number of globally recognised events such as the Australian Tennis Open.

City of Melbourne Lord Mayor Robert Doyle said he was thrilled with Melbourne's move up the rankings.

"What we have been recognised for is our combination of livability which includes our trees, our parks and gardens, our city safety, the events in our city, our retail, our arts and culture and the very substance of our city," he said.

"All in all we are a pretty cool city and I think that has been recognised in our latest survey."

Most of the cities in the top 10 were Canadian or Australian. Vancouver, Canada with its nice climate, crime-free streets, and universal healthcare came retained the top ranking for the fourth straight year. Vienna is now No. 3 after Melbourne knocked it from the second place, followed by Canada's Toronto and Calgary. Sydney came in seventh and Perth and Adelaide tied for eighth.

Report editor Jon Copestake said in a statement most of the most liveable cities were "mid-sized".

"...cities in developed countries with relatively low population densities tend to score well by having all the cultural and infrastructural benefits on offer with fewer problems related to crime or congestion."