Jean Seddon, who represents Warbreck ward, said: "I know it might seem unimportant to some people given all the other problems in Liverpool.
"But I am an animal lover and this has been a very cruel tradition.
"The little kids come along and don't understand the needs of these goldfish. I am very pleased at the action the council is taking."
A city council spokesman said: "All travelling fun fairs which come to the city will now have a clause written into their agreement with the council stating they will not be giving away any goldfish.
"Clearly, winning a pet as a prize is not the best way for someone to make a decision about becoming a responsible pet owner.
"This practice has caused concern to animal welfare groups and that has been the major influence on our decision."
The Animal Welfare Bill announced by the Government last year already bans children under 16 from buying a pet or winning a goldfish without an adult being present.
FISH THAT CAN TELL THE TIME
THERE are 11 different types of goldfish which all belong to the Carassius auratus species which originated in China.
The gold coloured fish was first recorded in the Chun dynasty, around the year 265 and raised in ponds in Buddhist monasteries.
Domestic goldfish can grow up to 12 inches in length and can have a lifespan of up to 20 years if cared for properly.
Scientists have recently discovered that goldfish are much more intelligent than they have previously been given credit for.
Research carried out by scientists at Plymouth University has found that goldfish can remember things up to three months later. They can also be taught to tell the time and to follow a routine.
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