Sir Albert won out after a challenge from Quinton councillor John Clancy – the fourth in the past five years.
Labour councillors, meeting in private, voted by 46 to 30 in support of the 69-year-old leader, who has become known as the great survivor for his ability to see off rivals.
It marks the end of a manic four-day period for Labour in Birmingham.
While the party somewhat lost its way in the General Election, Jess Phillips seizing control of Yardley from the Lib Dems meant nine out of 10 Birmingham MPs now represent Labour.
The party also tightened its grip on Britain’s largest local authority, securing seats in in Weoley and Stechford and Yardley North and taking its total control to 79 out of 120.
The Post has reported in recent months claims about pressure on Sir Albert from within the party but he is seen as a safe pair of hands when it comes to the city’s economy.