Super City Mayor Len Brown said Auckland was on its way up.
"Our consistent gains across a number of international quality of life surveys are a strong indication that Auckland is fast becoming the one to watch."
The magazine says Auckland's elevation is because of changes made in the 18 months since Mr Brown's election.
In particular, the magazine acknowledged the first Auckland Plan which strives for a more exciting city with better urban design and waterfront connections.
The magazine also praises city public transport initiatives, business-friendly environment and multiculturalism. The mayor is in the top 10 local government leaders.
Auckland Chamber of Commerce chief executive Michael Barnett said the accolade should not mask problems that still need to be addressed.
"The impact on our reputation is extremely positive - but then most New Zealanders would agree with that.
"What we are missing is an Auckland that is a great place to work and which offers career choices for the talented people that are being educated here but leaving because of a lack of opportunity," he said.
WORLD'S MOST LIVEABLE CITIES
1 Zurich
2 Helsinki
3 Copenhagen
4 Vienna
5 Munich
6 Melbourne
7 Tokyo
8 Sydney
9 Auckland
10 Stockholm
Source: Monocle magazine