The university ranked 169th in the QS World University Rankings, coming second in New Zealand after the University of Auckland which placed 81st in the world, and best in New Zealand.
• ODTtv: Otago University ranking improves
University of Otago deputy vice-chancellor Prof Vernon Squire said the university welcomed the latest ranking.
''Otago's latest ranking of 169 is a small but pleasing improvement on 2015's score of 173.
The university would continue to focus on providing quality research and teaching to ensure it retained its ranking, Prof Squire said.
The annual league table ranked the top 500 universities in the world based on research, resourcing, graduate employability and internationalisation.
Executive director of Universities New Zealand Chris Whelan said all eight New Zealand universities were ranked among the top 3% in the world.
New Zealand institutions ranked particularly well in research. However, Mr Whelan noted, student to staff ratios received low ratings.
