Culture minister Ed Vaizey has announced that a nationwide competition to find the UK’s City of Culture 2017 will be launched later this year.

Derry in Northern Ireland will be the UK’s first City of Culture in 2013 after beating Birmingham, Norwich and Sheffield to the title. It will host a series of cultural events throughout the year, including hosting the Turner Prize – the first time it will be held outside of England.

Details of the UK City of Culture 2017 competition and how to enter will be announced later this year, with the winner revealed in 2013.

Vaizey said: “Derry has taken up the challenge of being the very first UK City of Culture and promises a first-rate programme of world-class culture in 2013. It’s a prestigious title and I’m delighted to announce that another city will have the chance to shine in 2017.”

The City of Culture competition was launched by the previous Labour government following Liverpool’s success as European capital of culture in 2008.

A 2009 report by the City of Culture working group report stated that no new central government funding should be committed to UK City of Culture with the 2013 winner responsible for raising an estimated £10m to host the event.

It cost Liverpool £109m to be European Capital of Culture, although the working group said the region's economy was boosted by £800m.

Phil Redmond, who was chairman of the Liverpool Capital of Culture team and who chaired the panel that assessed bids to City of Culture 2013, said: “I have seen first-hand the enormous impact culture had in driving change in Liverpool. I can sense that building in Derry as they look poised to make the most of the opportunity.

“It is great news that the competition will be repeated and UK City of Culture is set to become a key event in the cultural diary of the UK.”