The Rainbow Cities Index ranked Britain's cities in order of LGBT friendliness - with Sheffield finishing 14th out of 26 British towns and cities.
The study, developed by Ampersand Travel, named London as the most LGBT-friendly city in the UK while Brighton, Manchester, Glasgow and Bristol completed the top five.
The study took into account various elements including work opportunities, safety, social scene, and global recognition for LGBT equality.
The study also found Newcastle and Sunderland are the safest cities for LGBT residents, Coventry is the best city for LGBT dating and Belfast is the most LGBT-friendly city in Northern Ireland.
Earlier this year, it was announced that Sheffield was to get its very first Gay Quarter.
However, organisers of Sheffield Pride also came in for critcism after this year's event at Endcliffe Park was described as a 'celebration, not a protest.'
But bosses admitted they had got it wrong after would-be participants were told that offensive placards would also be banned.
The group's committee apologised after angry complaints from members of the LGBT community who said that the whole Pride movement had been built on protest.
A spokesman said: "We had originally stated Pride was a ‘celebration not a protest’ following criticism we received after last years’ parade and event. We are working hard to ensure that this year’s Pride is an inclusive, respectful and celebratory event that welcomes everyone.
"We encourage everyone to wear bright clothing to represent the colours of the rainbow to bring a sense of celebration and visibility to the parade, however this is not a restriction and attendees can wear what they choose."
The first Pride event in Sheffield was held in 2008 and the event has grown each year with police figures estimating around 16,000 people attending the daytime event in 2017.