It has attracted 398 bids from towns across the UK.
Lisa Nandy, culture secretary, said: “For far too long, towns across the UK have felt left out of our national story.
“Today we celebrate the local pride that has always existed in towns around the country within this amazing display of postcards from bidding towns.”
Towns were invited to submit postcards championing their bids, which were displayed at the Museum of Liverpool during a visit by Ms Nandy and Sir Phil Redmond, chair of the independent judging panel.
Sir Phil said: “The number of towns that have entered the competition is incredible.
“It is a distinct moment in its own right, when people overwhelmingly wanted to demonstrate the sense of pride they have in their own communities.”
A shortlist will be announced in the coming weeks.
The winning town will host a season of culture in 2028.
Past City of Culture winners include Derry-Londonderry, Hull, Coventry, and Bradford, all of which have delivered long-lasting cultural legacies through the programme.
