Austria's capital has beaten Melbourne to be ranked the "world's most livable city" in a new annual survey released on Monday, ending the southern Australian city's seven-year reign.

It is the first time a European city has topped the annual chart compiled by the Economist Intelligence Unit which identifies the best urban playgrounds to live and work in.

Each year 140 cities are given scores out of 100 on a range of factors such as living standards, crime, transport infrastructure, access to education and healthcare, as well as political and economic stability.

Vienna scored a "near-ideal"99.1, beating Melbourne into second place on 98.4. Japan's Osaka took third place.

No. 1 Vienna, Austria

Australia and Canada dominated the top 10, each boasting three cities. Australia had Melbourne, Sydney (fifth) and Adelaide (10th) while Canada had Calgary (fourth), Vancouver (sixth) and Toronto (joint seventh).

"Those that score best tend to be mid-sized cities in wealthier countries," researchers said in their report.

They noted that several cities in the top 10 had relatively low population densities which fostered "a range of recreational activities without leading to high crime levels or overburdened infrastructure".

Australia and Canada, researchers said, have an overall average population density of 3.2 and four people per square kilometer respectively, compared to a global average of 58.

Japan, which alongside Osaka boasted Tokyo in the top 10 (joint seventh), is the glaring exception to that rule with a nationwide average of 347 people per sq km but its cities are still famed for their transport networks and living standards.