The ship was designed by Gerard Dijkstra who modelled her after the mid-19th century frigate Amsterdam, but she is not a replica. A major difference is that the hull is made of steel. The owners call the ship a "modern extreme clipper in historical perspective", meaning that the construction method is a combination of the best qualities of clippers of the past, outfitted and built with modern techniques but with a classic "look and feel". She is a very fast ship, with 15 knots being a normal speed. She won the 2001 Cutty Sark Tall Ships' Race.

The building of the hull in 1997/98 was used as a work experience project for the unemployed (e.g. metalworking and welding). The ship was first presented to the public at the 2000 edition of SAIL Amsterdam. During the 2005 and 2010 editions of the event she was the flagship.

The Stad Amsterdam is used for training and as a charter-ship for guests. The crew are mainly from the Netherlands and Denmark and the official language on board is English. Her home port is Amsterdam.