Sheffield fails to win UK City of Culture crown
Sheffield has lost out to Londonderry on the chance to become the first UK City of Culture.
A crowd gathered at Sheffield's Winter Garden as the official announcement was made in Liverpool.
The shortlist also included Birmingham and Norwich. The title was expected to provide the winning city with economic and social benefits.
The UK City of Culture 2013 follows the success of Liverpool's year as European Capital of Culture 2008.
The announcement was broadcast live on BBC One's The One Show at 1900 BST.
Sheffield's bid was backed by city-born Monty Python star Michael Palin, actor Sean Bean and indie rock band Arctic Monkeys.
Paul Billington, bid leader and director of culture for Sheffield city council, said: "We knew from the beginning there would be winners and losers.
"We've had a massive consultation and support from people in the city. It's been a big boost of confidence for the city and this has increased our profile and reputation. There has been all sorts of benefits.
"We are a city of culture and this process has proven this. We're not UK City of Culture in 2013 but we will move on."
Councillor Paul Scriven, leader of Sheffield City Council, said: "I am very proud of the city for coming this far. To beat off 29 other bidders to make the final four shortlist has been a fantastic achievement in itself."
He paid tribute to "Sheffielders" for their support and "unstinting belief in the city" and added that they would still aim to deliver part of the programme set out in the bid document.
He said: "We have always been a city of creative, innovative and entrepreneurial thinking which was reflected throughout our bid.
"Independent and authentic 'DIY culture' is what the city is all about and will continue to be about as we move forwards."
Brendan Moffett of Creative Sheffield, said: "We're obviously very disappointed. We always knew it was very competitive. We've done brilliantly to get this far. We're a great city and we'll continue to press on.
"I think this bid has really helped us. It's brought us together as a city like never before. The legacy of this will continue."
TV producer and writer Phil Redmond, who sat on the Independent Advisory Panel, said they had "four extremely strong bids". He added: "We felt that we came to a unanimous consensus that Derry answered the question about what they would bring."