The Dunedin City Council and the Automobile Association both welcomed the news, but said there was more to do.
The transport agency said according to its communities at risk register, road safety risks still remained high in the city.
However, this year’s analysis of 2020 data placed Dunedin below New Zealand’s worst 10 areas, which included Waitomo, Wairoa, Kaipara, the Far North, and Masterton.
The register showed Dunedin trailed only Invercargill for worst road safety risk at intersections.
But in the category of young drivers (aged 16 to 24), for example, in 2020, Dunedin’s risk register dropped far below its past high ranking.
Council transport engineering and road safety team leader Hjarne Poulsen said the latest risk register had some welcome signs of improvement for the city.
Speed limit reviews, new school zones and intersection improvements, had all helped, Mr Poulsen said.
But he pointed to Dunedin’s road safety risk at intersections.
The agency analysis emphasised the need for continued intersection improvements, enforcement and education across the city, he said.
Further, the city also continued to feature prominently in terms of risks to pedestrians and older people.
"Now is not the time to relax," Mr Poulsen said.
"Continuing to improve road safety outcomes will be a focus over the next few years."
Dunedin still had issues with people using cellphones while driving, and red light running, automobile Association Otago District Council chairman Malcolm Budd said.
But the AA was pleased that Dunedin had "dropped out of the top 10".
This was a step in the right direction, he said.
An agency spokeswoman said the risk register represented relative levels of road safety risks and Dunedin’s position on the personal risk register had not really changed too much per capita.
"It’s just that some other councils’ populations have got slightly worse and jumped up above it," she said.
Invercargill City Council roading manager Russell Pearson said was was aware of its ranking for road safety at intersections.
The council was seeking to make improvements there, he said.
