Moseley farmers' market has been named the best in the Midlands.
The market, which has been run by volunteers for four years, was shortlisted after food experts described it as a model for city-based markets.
In total, 18 markets in the UK were nominated and the public were asked to vote for their favourite.
With its 40 stalls selling fresh, locally produced food, Moseley farmers' market, which attracts thousands of people every month, beat markets in Stratford-upon-Avon, and Ludlow.
Birmingham's bid was supported by Michelin-starred chef Shaun Hill, who oversees the celebrated London restaurants Le Caprice and The Ivy.
Mr Hill said: "Moseley market is emblematic of the farmers' market success story.
"Although it's on the edge of a city, a good drive from dairy farms, sheep and cows, it is thriving.
"It is well supported by people in the area. There are all sections of small scale, artisan food production, top-notch in their fields.
"Best of all, there is a chance for those growing and making food to talk directly to those city dwellers who buy it, and vice versa."
The farmers' market in Edinburgh was chosen as the best in Britain by the magazine.
Although known for its bitter weather, Edinburgh boasts 65 regular stallholders, who drive beer down from the Black Isle near Inverness, ship fresh langoustine, crab and mussels from the island of Arran and boar raised on smallholdings and hill farms across the country.
It is visited by 6,000 and 10,000 shoppers every Saturday and has become a showcase for Scottish agriculture since emerging in 2000.
It is also the only farmers' market in Britain that features an officially-accredited festival venue with an open air stage for street musicians and mime artists during the city's annual film festival.
The competition was also judged by the Farmers Retail and Markets Association (Farma).
Rita Exner, Farma secretary, said farmers' markets like the one in Moseley were rapidly emerging as a significant, and sometimes crucial, source of income for the country's smaller producers.
Since the first opened in Bath in 1997, the association estimates that there are now about 550 regular markets around the country, with more opening regularly.
Although most of the markets only open once a month, they can earn nearly #220 million a year.
Mark Hedges, editor of Country Life magazine swhich runs the competition, said: "Local food is attracting more interest than it has for a generation and is an issue increasingly at the centre of everyone's thinking."
The 18 semi-finalists comprised of three farmers' markets from each of six regions including the Midlands, East of England, Scotland and the North, the South-west, the South-east ]nd Wales.
The public then voted for their favourite markets.
Clarissa Dickson-Wright, formerly one half of the Two Fat Ladies cookery show, said: "The competition was certainly strong, but Edinburgh was named Britain's favourite farmers' market because it really represents the future of farmers' markets in Britain."