The 'Ultimate Dog Tease' video features the canine being teased by its owners about food given to other pets, to which the dog appears to bark, "You're kidding me!"
The 1.21-minute video has been viewed a staggering 74 million times on the Google-owned video sharing site.
In second place was a viral advert for the mobile network T-Mobile, featuring actors dressed as the Prince of Wales and the Duchess of Cornwall dancing down the aisle at the royal wedding.
'Songify This - Winning', featuring edits of interviews with the US actor Charlie Sheen after he was fired from sitcom Two and a Half Men set to music, came in third place, ahead of bizarre animation 'Nyan Cat' in fourth and Michael Collings's Britain's Got Talent audition in fifth.
The UK's top 10 YouTube clips in 2011 runs as follows:
1. 'Ultimate Dog Tease'
2. 'The T-Mobile Royal Wedding'
3. 'Songify This - Winning'
4. 'Nyan Cat [original]'
5. 'Michael Collings's Britain's Got Talent audition'
6. 'Masterchef Synesthesia'
7. 'Diary of a bad man 5'
8. 'Rebecca Black 'Friday' (Brock's Dub)'
9. 'Talking Twin Babies'
"The ten most watched YouTube videos of 2011 show that around the world, whatever language we speak, there are certain things that bring us together around a computer screen or mobile phone," said YouTube's trend manager Kevin Allocca.
"Adorable babies, talented performers, and clever advertising."
Also in the UK, Jessie J's 'Price Tag' was the most watched music video of 2011, ahead of Nicki Minaj's 'Super Bass' and Jennifer Lopez's 'On the Floor' ft. Pitbull.
Between them, the top ten most popular videos have racked up more than 285 million hits worldwide since being posted on YouTube.
Rebecca Black's debut single 'Friday' was the most watched YouTube video around the world during this year, after frenzied social media hatred ensured the video went viral.
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