Sunshine Kids on Newgate, cares for 51 children aged from two-five years old.
And owner Julie Smith said the glowing report from inspectors is all down to the dedication of the eight-strong team of staff, other professionals and the early years team.
She added: “The staff are brilliant.
“They are passionate about their jobs and it shows when we get results like this.”
The inspector had nothing but good things to say about the nursery.
In the report she stated: “Children thoroughly enjoy their time in this exceptionally welcoming setting” and added that they come in “readily and are settled and secure”.
She also praised their behaviour saying that it was “exemplary” and that they “understand the rules of the setting and recognise the impact their behaviour has on others.”
Ms Smith said: “We are very proud to have been rated outstanding for the past 10 years.
“Parents say the nursery exceeds their expectations and that it supports the needs of the children exceptionally well”.
Ms Smith has owned the nursery for 27 years and is now welcoming the children of some of her first pupils.
“It’s lovely to see how they have grown up but it makes me feel old,”she said.
The nursery is housed in the church hall of the Central Methodist Church.
Ms Smith said: “Although we operate independently from the church we do come together with them for important celebrations such as Christmas, Easter and the Jubilee.”
Nursery staff came in for particular praise from the inspector. She said: “Staff use every moment as an opportunity for learning.
“They encourage children to count and recognise amounts and quantities. Staff question children about the size,position and order of objects.
“Children demonstrate extremely high levels of engagement and concentration.
She described the manager as “exceptional”. Adding that she provides a culture of mutual support and is dedicated to ensuring that staff are fully supported and that they continually update their knowledge and skills.
Other aspects of the curriculum singled out include making the children aware of the importance of healthy lifestyles.
She said: “They discuss the impact of exercise on their bodies. They feel their heartbeats after exercise outdoors.
“Children participate in yoga and practise deep breathing exercises to promote their emotional well-being.”
Ms Smith said: “We aim to provide every child with the knowledge and skills for them to achieve their full potential.”