Drivers in the capital spent an average of 99 hours sat in traffic in 2023 – an increase from 97 hours the previous year.
The report was published by traffic data and information supplier Inrix, who revealed that London is only behind New York and Mexico City.
However, both China and India are not included in the report.
Author of the report, Bob Pishue, said: “We are seeing travel return to pre-Covid levels.
“The UK and Europe have seen smaller increases in congestion this year than in other parts of the world which indicates that these countries have found their new travel norms.
“While London remains most impacted by congestion in the UK, its drop to third suggests that other large global cities have returned to pre-Covid levels of activity.
“As an indication of strong economic activity, increased congestion can be a positive sign for cities.”
Inrix’s data showed that the length of time lost by drivers stuck in traffic increased by 3% compared to pre-Covid levels.
Further analysis revealed that the average driver in the UK spent 61 hours sat behind the wheel in traffic last year – an increase from 57 hours in 2022.
The other most congested cities in the UK were Birmingham, Bristol, Leeds, and Wigan.
RAC spokesperson Rod Dennis said: “For a driver, every hour sat in congestion is another hour of wasted time and, for most people, wasted fuel.
“Congestion can also lead to poor air quality. It’s incumbent for cities to find ways to tackle it and not accept it as a given.
“While some measures can be costly – for instance, new park and ride schemes to reduce the amount of traffic having to go into city centres – others are very cheap to implement yet can still make a difference, such as retiming traffic lights to help with traffic flow.”