The city of Liverpool has succeeded in developing a positive global image, according to a new report.

Saffron Brand Consultants rated the 2008 European Capital of Culture third out of 72 in terms of how the city is viewed compared to its assets.

In particular, visitors are attracted by famous images of Liverpool and have positive impressions of the northern city.

Mike Taylor, Liverpool Vision's director of investment, praised the way the Merseyside city has succeeded in developing its profile and facilities.

He told the Liverpool Daily Post: "Brands are vitally important to successful cities. This research demonstrates how effectively the Liverpool brand is changing national and international perceptions."

Saffron's study is at odds with a recent report from the Policy Exchange which heavily criticised northern towns including Liverpool and suggested that people may benefit from relocating to southern areas.

Major party leaders have dismissed the Policy Exchange findings and stressed that sustained investment has resulted in successful and long-term regeneration throughout the north.