The Danish Club of Motoring Journalists, called the MKD, and its jury of 23 members chose the Citroen C3 from the 16 candidates.
The car manufacturer said that in the final rankings, the C3 scored 174 points, 33 more than its nearest rival.
Citroen said: 'Among the car's strong points, the jury particularly appreciated the charm, attractive styling and roomy front seats. The high standards of safety were also mentioned, with particular reference to the emergency braking assistance and the six airbags fitted as standard.'
The car also received the title of Compact Car of the Year in The Netherlands, awarded by the Dutch Automobile Club.