Lord Mayor Lisa Scaffidi has finished runner-up in the 2012 World Mayor Project.
Ms Scaffidi was awarded the World Mayor Commendation after being pipped by Iñaki Azkuna, Mayor of Bilbao, Spain.
The decision followed a nine-month public nomination and voting process by a judging panel comprising the fellows of The City Mayors Foundation.
City Mayors senior fellow Tann vom Hove said that under Ms Scaffidi's leadership, Perth had become Australia's third city after Sydney and Melbourne.
Iñaki Azkuna, mayor since 1999, has been instrumental in transforming Bilbao from a declining industrial city into an international centre for tourism and the arts.
The World Mayor Project has been organised since 2004 by The City Mayors Foundation, an international think tank and campaigning organisation on urban affairs. It recognises the achievements of outstanding mayors from all world regions.Top 10
1 Iñaki Azkuna, Bilbao, Spain2 Lisa Scaffidi, Perth, Australia3 Joko Widodo, Surakarta, Indonesia4 Régis Labeaume, Québec City, Canada5 John F Cook, El Paso, USA6 Park Wan-su, Changwon City, South Korea7 Len Brown, Auckland, New Zealand8 Edgardo Pamintuan, Angeles City, Philippines9 Mouhib Khatir, Zeralda, Algeria10 Alfonso Sánchez Garza, Matamoros, Mexico