The ranking is based on the 2010 Hydrogen Global Professionals on the Move study of 3,155 mid-to-senior level professionals earning an average salary of $US125,000 ($135,000).

It found that as well as being a leading choice for lawyers, Australia as a relocation destination tops the list for human resources and engineering professionals, and is the second most sought after place to relocate to for professionals in the finance and technology industries.

But while Australia ranks highly as the place to be, Emma Halls, director of Hydrogen Australia, notes that the global downturn has highlighted the need for CEOs and other company leaders to change their approach in order to attract, import and retain the best staff.

"Australia is renowned for its excellent quality of life, but CEOs and key decision-makers need to re-evaluate salaries and relocation packages in order to reflect the weakness of the UK pound versus the Australian dollar, as well as other factors such as the cost of living here," Halls said.

"There is a wealth of international talent out there who want to come to Australia to work. They are attracted to Australia's image, but the country's increasing cost of living can be a factor that pushes them to take up positions in South-East Asia or the Middle East..."

According to Claudia Jonszyk, associate professor of Organisation Studies at ESCP Europe, the research has clear implications for the global recruitment market post the global recession.

"When things do pick up, the global war for talent will intensify even more, and the companies and countries offering the best conditions - not only financially but overall with regard to quality of life - will attract the best talent who, as the research indicates, are highly mobile and flexible," Jonszyk said.