The project is the result of a collaboration between Birmingham City Council, Birmingham LGBT and other partners.
The sculpture, called the "Rhinestone Rhino", cost £15,000 to create with £10,000 coming from the city council. It's a sculpture of a life-size rhinoceros which has been decorated with mirrors and replica gemstones.
Its unveiling coincides with Birmingham Pride which takes place over the Diamond Jubilee weekend.
The artists say the horned animal symbolises strength and was originally a symbol of the gay rights movement in the United States. The gemstone surface reflects Birmingham's rich jewellery-making history.
The city's already has one famous life-size animal sculpture the bronze bull that sits outside the Bullring shopping centre.