Shaftesbury Avenue alleyway was described by the council as “a vibrant, attractive and tranquil area” featuring seating, a fairy garden, and an “appealing archway”.
Mr Simpson said: “While receiving such recognition is gratifying, the value of our protected alleyway extends beyond competitions.
“Since the gates were installed in 2017, our community has collaborated to establish a safe and welcoming environment for all residents, both current and future.”
In Castleton, Barry Flynn joined with neighbours in Smalley Street to enter the competition for the third year and secured the runner-up spot.
Barry said: “The gates have helped turn a once unused and problematic space into a thriving community garden, which we are continuing to develop and improve.
“We’re delighted to have been chosen again as an example of how alleyways like these can be transformed into a safe haven and welcoming space that not only look great but offer a place for peace and relaxation.”
The sites at Shaftesbury Avenue and Smalley Street are two of more than 600 protected alleyways across the borough.