The concept of urban competitiveness is difficult to describe unanimously, and in research ref- erences it is often identified with regional competitiveness. The European spatial development perspec- tive maintains that regional competitiveness is directly determined by economic power of a city. The arti- cle includes analysis on concepts of regional and urban competitiveness. Analysis of research literature references on the urban competitiveness factors and models is conducted. From the majority of analyzed factors, one key factor is distinguished - strategic urban development plans, and a method, facilitating management of this factor, is offered. The objective of this study - to develop a competitive urban- regional development model from the sustainability perspective, which allows, by applying the estab- lished competitiveness factors, to assess its competitive economic, social and environmental position with respect to other cities. Research methods involve the analysis and generalization of research literature ref- erences.