New York won the top gong on a list compiled by the non-profit group Global Language Monitor, while Hong Kong, London, Paris and Los Angeles rounded out the top five cities.
The news coincides with the launch of this year's Rosemount Sydney Fashion Festival on Monday.
NSW Arts Minister Virginia Judge said on Tuesday the survey showed there was "no doubt" Sydney was leading Melbourne in the fashion stakes.
"Sydney is the home to Australia's best fashion designers including Akira, Carla Zampatti, Collette Dinnigan, Jayson Brunsdon, Romance was Born, Zimmerman, Lisa Ho to name but a few," Ms Judge said in a statement.
Virginia Judge, Minister for the Arts and Jackie Frank, editor of Marie Claire
Jayson Brunsdon
Kate Waterhouse, media celebrity and fashion editor for the Sun Herald in Sydney
Alex Perry
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