Liverpool has been chosen to be the European Capital of Culture in 2008.
The North-West city has nudged out the Newcastle-Gateshead bid, which was a favourite to win.
Liverpool has won over five other cities -- Newcastle-Gateshead, Birmingham, Bristol, Cardiff, and Oxford -- to win this much sought-after prize.
The title is expected to attract more tourists, increase investment and create jobs as well as boost the profile of the winning city.
In making the announcement, Culture Secretary Tessa Jowell said the competition had "brought out the very best" in all the cities which had entered.
The rivalry between those selected has been fierce, owing to the benefits previous holders of the title have received.
The UK's last City of Culture - Glasgow in 1990 - saw a massive increase in tourism as a result of winning the title.
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