Following a visit in December inspectors praised progress made by Birmingham Children's Trust (BCT), which took over the running of children's services in the city in April last year, in a bid to improve standards.
The trust's rating of "requires improvement to be good" is the first time children's services in Birmingham have not received Ofsted's lowest grading since 2009.
The council's decision in May 2016 to switch to trust management of children's services, followed the high-profile deaths of children, including two-year-old Keanu Williams and seven-year-old Khyra Ishaq.
The changes have led to a "revitalisation" of both social work practice and working culture, which in turn has improved the experiences of children, Ofsted's report states.
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