Places which stood on the brink of ruin just 20 years ago are successfully rebuilding their environment, economy and society from a low point of industrial decay and unemployment, says the analysis.

All seven adopted a similar blueprint to haul themselves back, using tactics which included bidding for high-profile sporting and cultural events, cleaning and renovating squalid streets, restoring major landmarks, training citizens in new skills and mixing funding from public and private sources.

After a history of industrial and political conflict, Sheffield's revival is largely attributed to the partnerships between its public and private sectors, the regeneration of the city centre, new funds being allocated to 'core' cities by the Government and the council's strategy for improving life in the neighbourhoods.

The policy of encouraging the public and private sectors to work together closely has turned Sheffield into "an avant garde model of city reform", says the study by the London School of Economics and Political Science.

Researchers spent two years studying the cities of Belfast, Sheffield, Leipzig, Bremen, Bilbao, Turin and St Etienne.

The former industrial giants are now developing high-tech businesses, halting the population drain from inner-cities and, in some cases, have already seen employment outstrip the number of jobs lost in manufacturing.

Anne Power, Professor of Social Policy and the report's author, said: "These former industrial cities have proved far more resilient than many people dared hope. During the 1980s and 1990s they lost up to 80% of their manufacturing jobs and this led to polarised neighbourhoods, crumbling city centres and creaking public transport, schools and healthcare. Their very future was in question.

"Our report shows a pattern book of recovery that the cities used to fight back. They adopted multiple strategies which didn't only focus on their economy but also involved improving the urban environment and helping their disadvantaged populations back to work. It's clear that cities cannot recover without mixing all three of these elements."