Sheffield loses out in battle for City of Culture honour
The team behind the Steel City bid said, however, they were determined to ensure that arts and culture would continue to be promoted despite the disappointment.
The City of Culture title, which comes with no Government funding, is designed to help areas boost their economy through tourism and the creative industries.
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Hide AdIt will be held by Londonderry from 2013, with Birmingham and Norwich the other two cities to have missed out.
Sheffield's bid director Paul Billington said:"We are disappointed but we knew from the start that this was a very competitive process and we wanted to make sure all our work would be worthwhile regardless of the result.
"Obviously are plans will be scaled back but we still have a set direction which we will continue.
"One of the things that has become clear in Sheffield is that people don't simply want to sit back and watch arts and culture they want to participate, to be creative and to perform. So we will be looking at how we can inject this into our plans."
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Hide AdAn independent panel of 14 judges, led by TV producer Phil Redmond, examined the bids of the top four cities, themselves shortlisted from 29 initial applicants.
Mr Redmond was joined by Culture Minister Ed Vaizey to announce the winner.
Northern Ireland's Deputy First Minister and Derry native Martin McGuinness said winning was "a gift to the peacemakers".
He added: "This is fantastic news for the city and the entire region and I am immensely proud of what has been achieved. "